National Small Business Amendment Bill

1
National Small Business Amendment Bill

• Presentation to Port Folio Committee on Trade and
  Industry
• 5 November 2004
• Lionel October and Hlonela Lupuwana
• Enterprise and Industry Development Division

2
National Small Business Amendment BillMembers
comments

• Members comments related to the following main
  areas of concern
• Governance
• Composition of Board
• Term of CEO
• Accountability to stakeholders and beneficiaries
• Clarifying the relationship with Provinces
• National network
• Provincial structures
• Monitoring and Evaluation and Performance
  Management
• Staff
• Agency
• Implementation of Government Policy
• Mandatory requirements
• Other

3
National Small Business Amendment Bill Governance

• Constitution of Board and appointment of members
  of Board
• 11. (6) The Board must include
• (a) members who have experience in business
• (b) members who on account of their training and
  experience
• (i) are knowledgeable about trade, industry,
  finance or the economy or
• (ii) have legal knowledge or
• (iii) are knowledgeable in the management of a
  small enterprise.
• (7) The Minister may prescribe any other criteria
  in respect of the appointment of members.

4
National Small Business Amendment Bill Governance

• Termination of appointment of members of Board
• 13C.(1)The Minister may, in consultation with the
  Board, terminate the appointment of a member
• (g) If a member of the Board fails to attend
  three consecutive meetings of the Board without
  having a valid explanation for his or her failure
  to do so.
• Chief Executive Officer
• 13H. (2) Subject to this chapter, a person
  appointed in terms of subsection (1) holds
  office for a period not exceeding five years as
  specified in the letter of appointment, and is
  eligible for reappointment.

5
National Small Business Amendment Bill
Accountability to stakeholders and beneficiaries

• Conduct of meetings
• 13E. (6) The Board must at least once a year hold
  consultative meetings with stakeholders,
  beneficiaries and provincial representatives to
  discuss the activities and performance of the
  Agency.
• Business plan
• 16. (2) The Business plan must
• (d) include a report on the consultation
  contemplated in section 13E (6) and the
  recommendations resulting from such
  consultations.

6
National Small Business Amendment Bill
Clarifying the relationship with Provinces

• Functions of Agency
• 10. (1) The Agency must
• design and implement a standard and common
  national delivery network that must uniformly
  apply throughout the Republic in respect of small
  enterprise development, integrating all
  government funded small enterprise support
  agencies across all tiers of government.
• (d) Establish provincial structures to ensure the
  effective implementation of its functions as
  defined in this section.

7
National Small Business Amendment Bill
Monitoring and Evaluation and Performance
Management

• Conduct of meetings
• 13E. (6) The Board must at least once a year hold
  consultative meetings with stakeholders,
  beneficiaries and provincial representatives to
  discuss the activities and performance of
  the Agency.
• Business plan
• 16. (2) The business plan must
• (c) include an operational plan, a financial
  plan, a human resources and performance
  management plan as well as performance
  indicators for the purposes of monitoring and
  evaluation.

8
National Small Business Amendment Bill
Implementation of Government Policy - Mandatory
requirements

• Functions of Agency
• 10. (1) The Agency must
• (a) implement the policy of the national
  government for small enterprise development

9
National Small Business Amendment Bill Other
amendments

• Restriction on the use of name
• 16C. (2) Any person who contravenes subsection
  (1) is guilty of an offence and is liable on
  conviction to a fine or imprisonment, or to both
  a fine and imprisonment for a period not
  exceeding five years.
• Short title
• 6. This Act is called the National Small Business
  Amendment Act 2004. deleted and comes into
  operation on a date determined by the President
  by proclamation in the Gazette.
• Amendments related to Numbering

10
National Small Business Amendment Bill Status
quo

• After consultation between the dti and the State
  Law Advisor it is proposed that the following
  sections remain unchanged
• Sec 15(3) dealing with short term loans p 8
• Necessary for operational purposes
• Ministers of Trade and Industry and Finance to
  approve
• Sec 16B dealing with limitation of liability p
  8
• Standard limitation clause
• Applies only to civil liability, not criminal
• Standard practice
• South African Civil Aviation Authority Act,
  section 19
• South African Maritime Authority Safety Act,
  section 46
• Sec 3 dealing with regulations p11
• Requested the dti legal unit to draft discussion
  paper on
• Consultation process for the drafting of
  regulations
• Purposes for which regulations are utilised
• Parameters within which regulations are drafted

11

• Thank you for your continued support