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HSRC Annual Report 2016/17
Role and
Function of
the Board
The HSRC was established in terms of the HSRC Act (Act No. 17 of 2008) and, as a Schedule 3A public entity, performs
within the statutory guidelines of the Public Finance Management Act (Act No. 1 of 1999) (PFMA) and the associated
treasury regulations. In adhering to the requirements of the executive authority, the HSRC Board adopted the King Code
of Governance Principles and the King Report on Governance (King III) principles of good governance.
The Board is appointed to govern and control the council in accordance with the HSRC Act and is accountable to the
Minister of Science and Technology and Parliament in the execution of its function. The Board Charter, approved in
November 2009 and reviewed annually, defines the responsibilities and duties of the Board as follows:
Corporate governance
•
To ensure that the activities, performance, and values of the HSRC are in accordance with the statutory objects and
functions, as specified in sections 3 and 4 of the Act;
•
To determine, monitor and evaluate the implementation of the HSRC’s Strategic and Business Plan in conjunction
with the Chief Executive Officer (CEO), and to conclude a shareholder’s agreement with the executive authority
(the minister) setting out mutual rights and obligations;
•
To exercise fiduciary oversight over the assets of the HSRC, but ensuring that the HSRC’s financial records are regularly
audited in accordance with best corporate practice; that management of assets comply with the Public Finance
Management Act; and that there are adequate risk management measures, procedures and practices in place to
protect the HSRC’s assets and reputation;
•
To ensure that HSRC practices comply with legislation relating to transformation, labour relations and occupational
safety;
•
To ensure that the HSRC complies with all relevant laws, regulations and codes of best business practice;
•
To exercise leadership, enterprise, integrity and judgment in directing the affairs of the HSRC.
Responsibilities
•
To appoint the CEO of the HSRC in accordance with the procedures set out in section 10 of the HSRC Act;
•
To monitor the performance and effectiveness of the HSRC, the CEO and the other employees of the HSRC on the
basis of predetermined performance indicators laid down by the Board, and to receive periodic reports from the
CEO on the functioning and operations of the HSRC;
•
To serve as the ultimate employer of all HSRC employees; in this role the Board approves the general terms and
conditions of employment, as well as structures for remuneration, allowances, subsidies and other benefits in
accordance with such system as may be approved by the Minister of Science and Technology with the concurrence
of the Minister of Finance;
•
To approve the acquisition and alienation of HSRC assets in accordance with the PFMA, and to regulate the
commercialisation of the inventions of the HSRC;
•
To establish policies and guidelines for the functioning of the HSRC.
PART C: Governance