Agricultural Produce Agents Act


Published: 1992-03-13

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Agricultural Produce Agents Act 12 of 1992
Please note that most Acts are published in English and another South African official language. Currently we only have capacity to publish the English versions.
This means that this document will only contain odd numbered pages as the other language is printed on uneven numbered pages.
Government Gazette
REPUBLIC OF SOUTH AFRICA
Vol. 321 Cape Town 13 March 1992 No. 13829
THE PRESIDENCY
No. 781 13 March 1992
It is hereby notified that the President has assented to the following Act, which is hereby published for general information:–
No. 12 of 1992: Agricultural Produce Agents Act, 1992

GOVERNMENT GAZETTE, 13 MARCH 1992
AGRICULTURAL PRODUCE AGENTS ACT, 1992
ACT
No. 13829 3
Act No. 12, 1992
To provide for the establishment of an Agricultural Produce Agents Council and fidelity funds in respect of agricultural produce agents; for the control of certain activities of agricultural produce agents; and for matters connected therewith.
(English text signed by the State President.) (Assented to 3 March 1992.)
BE IT ENACTED by the State President and the Parliament of the Republicof South Africa, as follows:- Definitions
1. (1) In this Act, unless the context otherwise indicates- 5 (i) "agent" means a person who, for the acquisition of gain on his own
account or in a partnership, in any manner holds himself out as a person who, or directly or indirectly advertises that he, on the instructions of or on behalf of any other person, purchases or sells agricultural produce or negotiates in connection therewith or canvasses
10 or undertakes or offers to canvass a purchaser or seller therefor, but excluding- (a) a control board as defined in section 1 of the Marketing Act, 1968
(Act No. 59 of 1968), which in terms of a scheme likewise defined, purchases and sells an agricultural product to which such scheme
15 relates; (b) a person who, in the course of his agency, purchases and sells the
agricultural product concerned on behalf of a control board referred to in paragraph (a); and
(c) a local authority as defined in section 84(1)(j) of the Provincial 20 Government Act, 1961 (Act No. 32 of 1961), which sells an
agricultural product entrusted to an agent as defined above, on behalf of that agent at an auction; (i)
(ii) "agricultural product" means an article specified in Part A or B of Schedule 1 or added thereto under subsection (2) of this section; (ix)
25 (iii) "auditor" means a person registered in terms of section 15 of the Public Accountants' and Auditors' Act, 1991 (Act No. 80 of 1991), as an accountant or auditor, and engaged in public practice as such; (xii)
(iv) "building society" means a mutual building society as registered under the Mutual Building Societies Act, 1965 (Act No. 24 of 1965); (iv)
30 (v) "close corporation" means a close corporation referred to in the Close Corporations Act, 1984 (Act No. 69 of 1984); (iii)
(vi) "council" means the Agricultural Produce Agents Council established by section 2; (xiii)
(vii) "deposit-taking institution" means an institution registered finally as a 35 deposit-taking institution in terms of the Deposit-taking Institutions
Act, 1990 (Act No. 94 of 1990); (v) (viii) "fidelity fund certificate" means a fidelity fund certificate issued in
terms of section 16 or deemed to have been issued in terms of that section; (vii)
40 (ix) "fresh produce agent" means an agent acting as such with regard to any agricultural product specified in Part A of Schedule 1; (xvii)
(x) "fund", in relation to- (a) fresh produce agents, means the fidelity fund referred to in section
12(2); 45 (b) livestock agents, means the fidelity fund referred to in section
12(3): (vi)
1IIIIIID_-----WIl!il.:O.:JN'i'L' i
GOVERNMENT GAZETTE, 13 MARCH 1992
AGRICULTURAL PRODUCE AGENTS ACT, 1992
No. 13829 5
Act No. 12, 1992
(xi) "inspector" means an inspector referred to in section 27; (viii) (xii) "livestock agent" means an agent acting as such with regard to any
agricultural product specified in Part B of Schedule 1; (x) (xiii) "Minister" means the Minister of Agriculture; (xi)
5 (xiv) "officer" means an officer as defined in section 1 of the Public Service Act, 1984 (Act No. 111 of 1984), and includes an employee as so defined; (ii)
(xv) "registrar" means the Registrar of Agricultural Produce Agents ap- pointed in terms of section 8; (xv)
10 (xvi) "rules" means rules made under section 22; (xiv) (xvii) "trust account" means a trust account referred to in section 19. (xvi) (2) The Minister may amend Schedule 1 by notice in the Gazette.
Establishment of Agricultural Produce Agents Council
2. There is hereby established a juristic person to be known as the Agricultural 15 Produce Agents Council.
Constitution of council
3. (1) The Minister shall appoint as members of the council- (a) two officers, of whom-
(i) one shall be an officer of the Department of Agriculture; 20 (ii) one shall, after consultation with the Minister of Justice, be
appointed on account of his knowledge of law; (b) two persons nominated by the South African Agricultural Union, of
whom- (i) one shall represent producers of the articles specified in Part A of
25 Schedule 1; and (ii) one shall represent producers of the articles specified in Part B of
Schedule 1; (c) four persons acting as fresh produce agents, or who are directors of
companies or co-operatives or members of close corporations acting as 30 fresh produce agents, of whom-
(i) three shall be nominated by a body recognized by the Minister and known as the Institute of Market Agents of South Africa; and
(ii) one shall be nominated by a body recognized by the Minister and known as the Association of Co-operative Market Agents; and
35 (d) four persons acting as livestock agents, or who are directors of companies or co-operatives or members of close corporations acting as livestock agents, of whom- (i) three shall be nominated by a body recognized by the Minister and
known as the South African Federation of Livestock Auctioneers; 40 and
(ii) one shall be nominated by a body recognized by the Minister and known as the Association of Abattoir Agents of the Republic of South Africa.
(2) (a) Whenever it becomes necessary to appoint a member referred to in 45 subsection (1)(b), (c) or (d), the registrar shall request the body concerned in
writing to submit the applicable nominations to him in writing within a period specified in such request, which period shall not be less than 60 days.
(b) If such body fails to comply with the said request within the specified period, the Minister may at his discretion appoint such persons as he may deem
50 fit, in the place of the persons required to be nominated by that body. (c) The duties of the registrar set out in this subsection shall for the purposes
of the first appointment of members of the council be performed by the Director-General: Agriculture.
(3) No person shall be appointed as a member of the council- 55 (a) if-
(i) he is not a South African citizen resident in South Africa; (ii) he is an unrehabilitated insolvent;
(iii) he has failed or is unable to comply in full with a judgment or order, including an order as to costs, given against him by a court
60 of law in civil proceedings;
GOVERNMENT GAZETTE, 13 MARCH 1992
AGRICULTURAL PRODUCE AGENTS ACT, 1992
No. 13829 7
Act No. 12, 1992
(iv) he has been convicted of an offence involving an element of dishonesty or has been sentenced for any other offence to a period of imprisonment;
(b) in terms of subsection (l)(b), if he acts as a fresh produce agent or 5 livestock agent, or is a director of a company or co-operative or a
member of a close corporation acting as a fresh produce agent or livestock agent; or
(c) in terms of subsection (l)(c) or (d), if the council has- (i) in terms of section 16(6), in so far as it applies, refused to issue a
10 fidelity fund certificate to him or to the company or co-operative of which he is a director or to the close corporation of which he is a member; or
(ii) in terms of section 26(1)(c) withdrawn the fidelity fund certificate issued to him or to the company or co-operative of which he is a
15 director or to the close corporation of which he is a member, and has not suspended the execution of such withdrawal.
(4) (a) A member of the council shall, subject to the provisions of section 4-- (i) if he is an officer, hold office at the pleasure of the Minister; and
(ii) if he is any other member, hold office for three years, but shall on the 20 termination of the period for which he has been appointed, continue to
hold office for a further period not exceeding three months until his successor has been appointed.
(b) If a member of the council ceases to hold office for any reason, the Minister may, subject to the provisions of subsection (2), appoint any person in
25 his place for the unexpired period of his term of office. (c) A person whose term of office as a member of the council has expired shall
be eligible for reappointment. (5) A member of the council who is not an officer shall be paid, in respect of
his services as such, such remuneration and allowances out of the funds of the 30 council as the council may determine in general or in any particular case.
Vacating of office by members of council
4. A member of the council shall vacate his office if- (a) he becomes subject to any disqualification referred to in section 3(3); (b) he becomes of unsound mind;
35 (c) he has been absent from more than two consecutive meetings of the council without the leave of the council;
(d) he resigns as a member of the council and has notified the registrar in writing of his resignation;
(e) he is a member referred to in section 3(1)(b), (c) or (d), and the body 40 concerned notifies the registrar in writing that such member is no
longer that body's nominated member; or . (I) in the opinion of the Minister, after consultation with the other
members of the council, he is no longer fit to serve on the council.
Chairman and vice-chairman of council
45 5. (1) The members of the council shall at the first meeting of the council and thereafter as occasion arises, from among the members referred to in section 3(1)(b), (c) or (d) elect a chairman and a vice-chairman of the council.
(2) The member referred to in section 3(1)(a)(i) shall preside during the election of the chairman and vice-chairman.
50 (3) The term of office of the chairman and the vice-chairman shall terminate after the first meeting of the council after the end of the financial year of the council during which they were so elected.
(4) The chairman and the vice-chairman may vacate their offices without terminating their membership of the council.
55 (5) When the chairman is absent or is unable to perform his duties, the vice-chairman shall act as chairman, and if both the chairman and the vice- chairman are absent from a meeting or are unable to oprfror,.,., th= rI •••'--
GOVERNMENT GAZETTE, 13 MARCH 1992
AGRICULTURAL PRODUCE AGENTS ACT, 1992
No. 13829 9
Act No. 12, 1992
chairman, the members present shall from among their number elect a person to preside at that meeting.
(6) A person whose term of office as chairman or vice-chairman has expired through effluxion of time shall be eligible for re-election to this office: Provided
5 that no person shall serve as chairman or vice-chairman for more than six consecutive years.
Meetings and decisions of council
6. (1) The council shall meet for the first time at a time and place determined by the Minister and thereafter at such times and places as the chairman or, in his
10 absence, the vice-chairman may from time to time determine. (2) The chairman of the council may at any time convene an extraordinary
meeting of the council to be held at a time and place determined by him, and shall, upon a written request signed by not less than four members of the council, convene an extraordinary meeting thereof to be held within two weeks after the
15 date of receipt of such request, at a time and place determined by him. (3) The person presiding at a meeting of the council shall determine the
procedure at that meeting. (4) (a) The quorum for a meeting of the council shall be a majority of all its
members. 20 (b) The decision of a majority of the members of the council present at a
meeting thereof shall constitute a decision of the council. (c) In the event of an equality of votes on any matter the person presiding at
the meeting concerned shall have a casting vote in addition to his deliberative vote.
25 (5) No decision taken by the councilor act performed under the authority of the council shall be invalid by reason only of a casual vacancy on the councilor of the fact that any person not entitled to sit as a member of the council, sat as such a member at the time the decision was taken or the act was authorized, if the decision was taken or the act was authorized by the majority of the members
30 of the council who were present at the time and entitled to sit as members of the council.
Committees of council
7. (1) (a) There shall be two executive committees of the council which shall deal with matters relating to the occupations of fresh produce agent and
35 livestock agent, respectively. (b) The executive committees shall consist of the members of the council
referred to in paragraphs (b)(i) and (c), and paragraphs (b)(ii) and (d), respectively, of section 3(1).
(c) Subject to the provisions of this Act and the directives of the council, the 40 respective executive committees may during periods between meetings of the
council exercise all the powers and perform all the functions of the council with regard to the respective said occupations.
(d) Except in so far as the council may direct otherwise, the provisions of paragraph (c) of this subsection shall not be construed as authorizing an
45 executive committee to set aside or amend any decision of the councilor a committee referred to in subsection (2) (a) .
(e) The provisions of section 6(3), (4) and (5) shall mutatis mutandis apply to the executive committee.
(2) (a) The council may at its discretion appoint one or more other committees 50 consisting of so many members of the council and other persons as the council
may deem necessary, to perform, subject to the directives of the council, such functions of the council as the council may determine, or to advise the council on any matter assigned to the council by or under this Act, and the council may at any time dissolve or reconstitute such a committee.
55 (b) The chairman of any such committee shall be a member of the council designated by the council.
(c) The provisions of sections ](:'1) :mn f\(11 fAI ~"rl f"\ ~1..~11 '
GOVERNMENT GAZETTE, 13 MARCH 1992 No. 13829 11
AGRICULTURAL PRODUCE AGENTS ACT, 1992 Act No. 12, 1992
(3) Subject to the provisions of subsection (4), the council shall not be divested of or exempted from any function referred to in subsection (l)(c) or (2)(a).
(4) Any decision of any said committee may be withdrawn or amended by the councilor referred back to such committee and shall, until it has been so
5 withdrawn or amended, be deemed to be a decision of the council: Provided that a decision of any said executive committee may be withdrawn or amended only if the decision for such withdrawal or amendment was passed by at least two thirds of the members of the council present at a meeting thereof.
Registrar and staff
10 8. (1) The work incidental to the performance of the functions of the council and its committees shall be performed by-
(a) the Registrar of Agricultural Produce Agents, who shall be appointed by the council for the purposes of this Act; and
(b) persons with whom the council has entered into agreements for the 15 performance of specific activities or the rendering of specific services.
(2) The registrar may delegate or assign to a person appointed by the council to assist the registrar in his work, any power or duty conferred or imposed upon him by or under this Act.
Objects of council
20 9. The objects of the council shall be to regulate the practlSlng of the occupation of agent, and to maintain and enhance the status and dignity of that occupation and the integrity of persons practising that occupation.
Functions of council
10. The functions of the council are- 25 (a) to perform any functions in connection with agents entrusted to the
council by this Act or any other law; (b) to gather information in connection with agents and persons applying
for the issue of fidelity fund certificates; (c) to hire, purchase or otherwise acquire such movable or immovable
30 property as the council may deem necessary for the effective perform- ance of its functions, and to let, sell or otherwise dispose of property so purchased or acquired; and
(d) generally, to take such steps as it may deem necessary to achieve its objects.
35 Funds of council
11. (1) The funds of the council shall consist of- (a) money paid to the council in terms of this Act; and (b) all other money which may accrue to the council from any other source.
(2) The council shall utilize its funds to defray expenses incurred by the council 40 in the performance of its functions and the exercise of its powers under this Act.
(3) The council shall open an account at a deposit-taking institution or building society, and shall deposit all moneys referred to in subsection (1) therein.
(4) The council may invest any moneys deposited by it in an account in terms of subsection (3) and which are not required for immediate use.
45 (5) The financial year of the council shall end in each year upon the date determined by the council from time to time.
(6) The council shall- (a) cause accounting records to be kept of all moneys received or expended
by it, and of all its assets, liabilities and financial transactions; and 50 (b) as soon as possible, but not later than three months after the end of
each financial year, cause annual financial statements to be prepared showing, with all the appropriate particulars, the money received and the expenditure incurred by it during, and its assets and liabilities at the end of, that financial year.
GOVERNMENT GAZETTE, 13 MARCH 1992
AGRICULTURAL PRODUCE AGENTS ACT, 1992
No. 13829 13
Act No. 12, 1992
(7) The records and annual financial statements referred to in subsection (6) shall be audited by an auditor appointed by the council.
(8) The council shall within six months of the end of each financial year submit to the Minister a copy of the audited annual financial statements referred to in
5 subsection (6) (b) , together with a report on the activities of the council during that financial year.
(9) Copies of the annual financial statements and of the report referred to in subsection (8) shall-
(a) be open to public inspection at the office of the council during office 10 hours; and
(b) be obtainable from the council against payment of the amount deter- mined therefor by the council.
(10) The functions of the council in terms of this section may be performed separately in respect of fresh produce agents and livestock agents.
15 Establishment and control of fidelity funds
12. (1) There are hereby established two funds to be known as the Fresh Produce Agents Fidelity Fund and the Livestock Agents Fidelity Fund, respec- tively.
(2) The Fresh Produce Agents Fidelity Fund shall consist of- 20 (a) money in the fidelity guarantee fund established under section 27 of the
Agricultural Produce Agency Sales Act, 1975 (Act No. 12 of 1975); (b) each amount which is immediately prior to the commencement of this
section payable to or on the account of the fund referred to in paragraph (a), and is paid on or after such date of commencement;
25 (c) money paid to or on account of the said fund in terms of subsection (4) by fresh produce agents;
(d) money recovered by or on behalf of the said fund in terms of this Act; (e) money received by the said fund by virtue of a contractof insurance
referred to in section 15; 30 (f) income derived from the investment of money in the said fund; and
(g) any other money accruing to the said fund from any other source. (3) The Livestock Agents Fidelity Fund shall consist of-
(a) money paid to or on account of the said fund in terms of subsection (4) by livestock agents;
35 (b) money recovered by or on behalf of the said fund in terms of this Act; (c) money received by the said fund by virtue of a contract of insurance
referred to in section 15; (d) income derived from the investment of money in the said fund; and (e) any other money accruing to the said fund from any other source.
40 (4) (a) Each agent who is the holder of a fidelity fund certificate shall annually before or on a date determined by the council for this purpose, pay to the council for the account of the applicable fund an amount calculated on such basis or in such manner as the council may determine.
(b) A determination by the council in terms of paragraph (a) shall be made 45 with due regard to the purpose for which the fund concerned has been
established, as well as the present assets and future obligations of that fund. (5) (a) The funds are established to compensate persons in accordance with
the provisions of this Act for monetary losses suffered by them as a result of the failure of-
50 (i) commission agents as defined in section 1 of the Agricultural Produce Agency Sales Act, 1975, who were members of the fidelity guarantee fund referred to in subsection (2)(a) of this section prior to the commencement of this section, to comply with the provisions of the said Act and the regulations made thereunder; and
55 (ii) agents who are in possession of valid fidelity fund certificates, to comply with the provisions of thi~ Art :mrl thp rn!p

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