Duties, composition of new Board

Duties, composition of new Board

MAIN IMAGE: Minister of Human Settlements, Mmamoloko Tryphosa Kubayi-Ngubane

Staff writer

With the announcement last week by cabinet that the Minister of Human Settlements, Mmamoloko Tryphosa Kubayi-Ngubane, has announced the new Board of the Property Practitioners Regulatory Authority “PPRA”, which is to replace the Estate Agency Affairs Board (EAAB), the role of the board needs to be highlighted.

The new Board will replace the EAAB once the new Act has been signed by the president.

The current Act  prescribes that at least five (5) members of the Board should consist of real estate agents. However, the new Act does not require any Board member to be an active estate agent, but members should only have one or more of a broad set of skills, one of which  is sufficient experience as a property practitioner, as described in the new Act.

The Board, as announced,  consists of not less than nine but not more than 12 non-executive members, including the Chairperson, appointed by the Minister and the CEO, who serves on the Board by virtue of his or her office. The total number of the Board members must consist of a combination of the following skills and competencies:

  • Sufficient financial expertise
  • relevant legal experience
  • sufficient experience as property practitioners
  • sufficient experience in rural and land reform
  • sufficient experience in the promotion and protection of the consumer interests; and
  • at least one member nominated by the Minister of Trade and Industry, in consultation with the Minister, and
  • one member nominated by the Minister of Public Works, in consultation with the Minister.

A member of the Board who is not a public servant or in the full-time employ of the State may be paid out of the funds of the Authority the remuneration and allowances determined generally or in any case by the Minister in concurrence with the Minister of Finance.

At the same time, the Minister must ensure that the appointment of members of the Board is governed by the overriding principle of selection based on merit, determined by an assessment of the objects, functions and operations of the Authority, the competencies collectively required for serving on the Board, including the relevant skills, expertise and experience relating to governing an organ of state, having regard to subsection, and the qualifications, skills, expertise and experience of each individual prospective candidate.

The Board is broadly representative about race, gender and disability and most persons serving on the Board are not public servants.

A non-executive member of the Board holds office for a period of three years. A member of the Board who is upon completion of his or her three-year term of office eligible for reappointment, but no member may serve more than two consecutive terms of office and the Minister may not reappoint more than five members of the same Board.


A person may not be appointed to the Board if they are not a South African citizen or a permanent resident, and not ordinarily resident in the Republic, is a member of Parliament, a member of a provincial legislature, a member of Cabinet or a Deputy Minister, a Premier or other member of a provincial executive council, a member of the National House of Traditional Leaders or a Provincial House of Traditional Leaders, or a mayor or other member of a municipal council who or whose spouse, life partner, immediate family member, business partner or associate, holds an office in or is employed by or has any other interest whatsoever, whether direct or indirect, in any company or other entity which supplies goods or renders services to the Authority, unless such an interest is declared for purposes of considering that person’s nomination.

No one who is disqualified to act as a director of a company may serve on the Board or someone who has been found guilty in any civil or criminal proceedings by a court of law, to have acted fraudulently, dishonestly, unprofessionally, dishonourably or in breach of a fiduciary duty, or of any other offence for which such person has been sentenced to direct imprisonment without the option of a fine.

Duties and powers

The functions of the Board are:

  • ensure that the Authority complies with the Act and any other applicable law
  • ensure that the Authority performs its duties efficiently and effectively
  • provide corporate governance for the Authority
  • determine and enforce the broad policy framework within which the Authority must pursue its objects and perform its functions
  • ensure that the Authority exercises its powers in accordance with the principles of transparency and accountability
  • manage the marketing, promotion, sale, lease, financing, purchasing, registration, and transfer of property of the Authority
  • advise the Minister on the efficacy of this Act, the state of transformation of the industry, prescribing of regulations, education and training of property practitioners and any other matter on which the Minister requires the advice of the Board.
  • The board should maintain the Fund and hold it in trust.

Good governance

The Board must approve codes of ethics applicable to all members of the Board and employees of the Authority, respectively and from time to time, review those codes to ensure compliance with all current law, principles of good governance and ethical behaviour.

Nothing prevents the Board from voluntarily adopting any code, protocol, or charter not in conflict with any policy, code, protocol, guideline, or similar document contemplated in subsection and applicable to its members.

For the full description of the Board, its composition and duties click here.

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