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SABC s Legal Structure: What is to be done

2. SABC's Legal Structure: What is it?. Currently the SABC is a creature of statute ie Broadcasting ActHowever it is not a traditional statutory body as it's legal personality is that of a public company ie SABC Limited.It has a shareholding: 100% shares held by the Govt and the shareholder is rep

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SABC s Legal Structure: What is to be done

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    1. 1 SABCs Legal Structure: What is to be done? Justine Limpitlaw Media Law Consultant Academic, University of Pretoria

    2. 2 SABCs Legal Structure: What is it? Currently the SABC is a creature of statute ie Broadcasting Act However it is not a traditional statutory body as its legal personality is that of a public company ie SABC Limited. It has a shareholding: 100% shares held by the Govt and the shareholder is represented by the Minister of Communications It has Articles of Association and a Memorandum of Association as do all companies It has a Board of Directors (executive and non-executive)

    3. 3 SABCs Legal Structure: Problems? Broadcasting Act has many gaps No clarity on the role of the Minister/shareholder SABC has a shareholder compact which is not publicly available and which contains provisions that are, allegedly, contrary to the provisions of the Broadcasting Act Appointments: especially of the executive members of the Board and senior management Insufficient protection of the independence of the SABC: appointments (exec and non-exec Board members) and operational issues eg alleged cabinet/party interference in broadcasting content

    4. 4 SABCs Legal Structure: Problems? Memo and Articles contrary to the provisions of the Broadcasting Act (see Melissa later) No proper mechanism for public/civil society input Accountability unclear: Minister, ICASA, Parliament, Public?

    5. 5 SABC: What is to be done? SABC ought to be a Chapter 9 Institution Chapter 9 of the Constitution: State Institutions Supporting Constitutional Democracy eg Public Protectors, SAHRC, Auditor General, ICASA, IEC etc Constitutional protection for functioning, funding, independence of office-bearers etc SABCs role in providing majority of citizens with news and informs means that it is critical to the proper functioning of our democracy We need a Constitutional Amendment to include the SABC in Chapter 9 can be suggested/campaigned for every five years by civil society if parties unwilling to raise the issue in Parliament

    6. 6 SABC: What is to be done? Broadcasting Act should become an SABC Act with clear comprehensive provisions on how the SABC is be run ie Board appointments, editorial independence, public mandate etc Keep the corporate structure ie keep SABC as the SABC Limited: Corporate governance principles much clearer in law than governance for governmental/statutory bodies ie ethics, conflicts of interest, fiduciary duties etc Far easier to have transparency and access to corporate information under company law than if it were a statutory body eg Accounting reporting Annual Reports Directors Minutes etc Allows for private sector investment in commercial activities in future should this be decided upon

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