Medical Schemes Act

This section is titled “Application of Act.”

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Jurisdiction: South Africa
Instrument: Act or statute
Citation: Act 131 of 1998
Version: Undated source snapshot
Language: en
Updated: 20 Nov 1998
Official source: View official record ↗

accounting accounts and balance sheets accreditation administrative approval administrative notice annual reporting appeals appeals procedure appointments asset maintenance audit audited financial statements auditing Banking and financebenefit option approval benefit payments benefits benefits claims billing binding obligations board governance board/council membership broker services business naming +126 more

Statute overview

About this statute

This section is titled “Application of Act.” Establishes the Council for Medical Schemes. Section heading: “Constitution of Council.” This section is titled “Disqualification as member of Council, and vacation of office.” Section 6 is titled “Term of office of member of Council.”

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Legal text

Provisions of Medical Schemes Act

Showing 120 of 120

Part

CHAPTER 2

2
Application of Act
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AI-assisted research summary: This section is titled “Application of Act.”

2. Application of Act CHAPTER 3 COUNCIL FOR M EDICAL SCHEMES Part 1: Council

Part

Part 1: Council

3
Establishment of Council for Medical Schemes
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AI-assisted research summary: Establishes the Council for Medical Schemes.

3. Establishment of Council for Medical Schemes
4
Constitution of Council
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AI-assisted research summary: Section heading: “Constitution of Council.”

4. Constitution of Council
5
Disqualification as member of Council, and vacation of office
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AI-assisted research summary: This section is titled “Disqualification as member of Council, and vacation of office.”

5. Disqualification as member of Council, and vacation of office
6
Term of office of member of Council
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AI-assisted research summary: Section 6 is titled “Term of office of member of Council.”

6. Term of office of member of Council
7
Functions of Council
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AI-assisted research summary: 7. Functions of Council

7. Functions of Council
8
Powers of Council
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AI-assisted research summary: This provision is titled “Powers of Council,” but no operative rule text is provided here.

8. Powers of Council
9
Committees of Council
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AI-assisted research summary: This provision is titled “Committees of Council” and the provided text contains no operative rule.

9. Committees of Council
10
Meetings of Council
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AI-assisted research summary: Section title: Meetings of Council.

10. Meetings of Council
11
Remuneration of members of Council and committees
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AI-assisted research summary: This section concerns remuneration of members of Council and committees.

11. Remuneration of members of Council and committees
12
Funds of Council
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AI-assisted research summary: Section title: Funds of Council.

12. Funds of Council
13
Accounting officer
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AI-assisted research summary: Section heading: Accounting officer.

13. Accounting officer
15
Consultation between Minister and Council
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AI-assisted research summary: This section concerns consultation between the Minister and Council.

15. Consultation between Minister and Council
16
Cases of improper or disgraceful conduct
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AI-assisted research summary: Section heading: “Cases of improper or disgraceful conduct.”

16. Cases of improper or disgraceful conduct .- (Issue No 33- Supplemenfav) 101 STATUTES OF THE REPUBLIC OF SOUTH AFWCA–MEDIC~, DENTISTRY AND PHARMACY Medical Schemes Act, No. 131 of 1998
17
Liquidation
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AI-assisted research summary: This section is about liquidation and mentions the Registrar, Deputy Registrar, and Council staff.

17. Liquidation Part 2: Registrar, Depu@ Registrar and staff of Council
3
Establishment of Council for Medical Schemes.-( 1) There is hereby established a
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AI-assisted research summary: The Council for Medical Schemes is established as a juristic person, may sue and be sued, may hold and deal with property, and must operate transparently, responsively, and efficiently.

3. Establishment of Council for Medical Schemes.-( 1) There is hereby established a juristic person called the Council for Medical Schemes. (2) The Councd shall be entitled to sue and be sued, to acquire, possess and alienate moveable and immovable property and to acquire rights and incur liabilities. (3) The registered office of the Council shall be situated in Pretoria or such other address as the Council may from time to time determine. (4) The Council shall, at all times, finction in a transparent, responsive and efficient manner. (Issue No 33- Supplemen?u~) 111 STATUTES OF THE REPUBLIC OF SOUTH AFWCA–MEDICNE, DENTISTRY AND P~ACY Medical Schemes Act, No. 131 of 1998 SS.4–7 SS.4–7
4
Constitution of Council.<1) The Council shall consist of up to 15 members
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AI-assisted research summary: This section sets out how the Council is composed and how its chairperson, vice-chairperson, appointments, removal, and Gazette notice work.

4. Constitution of Council.<1) The Council shall consist of up to 15 members appointed by tie Minister tatig into account the interests of members and of medical schemes, expertise in law, accounting, medicine, actuarial sciences, economics and consumer affairs. (2) The Minister may appoint any member of the Council on a full-time or a part-time basis for such a period as the Minister may deem necessary. (3) The Minister shall appoint a member of the Council as chairperson, (4) Members of the Council shall elect from amongst themselves a vice-cha~erson, (5) men the chairperson is unable to perform his or her fictions in terms of this Act, the vice-chairperson shall act as chai~erson of the Council. (6) The cha@erson or the vice-chairperson or, in their absence, a member of the Council designated by the members present, shall preside at a meeting of the Council. (7) If a member dies or by virtue of section 5 (2) ceases to be a member, the Minister may, subject to the provisions of this section, appoint a person in that member’s place for the unexpired period of his or her term of office. (8) The Minister may at any time discharge a member of the Council from ofice if such a member is absent, except with tie leave of the chairperson, from more than three consecutive meetings of the Council, or is guilty of misconduct. (9) The Minister shall cause the name of every person appointed as a member of the Council and the period for which he or she has been appointed to be published in the Gazette.
5
Disqualification as member of Council, and vacation of office.-(l) No person
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AI-assisted research summary: A person cannot be appointed to the Council if disqualified by insolvency, professional disqualification, residency status, or certain convictions; a Council member must vacate office if later disqualified or if certain other events occur.

5. Disqualification as member of Council, and vacation of office.-(l) No person shall be appointed as a member of the Council if he or sh~ (a) is an unrehabilitated insolvent; (b) is disqualified under any law from carrying on his or her profession; (c) is not permanently resident in the Republic of South Africa; or (o has at any time been convicted (whether in the Republic of South Africa or elsewhere) of theft, fraud, forgery or uttering a forged document, perjury, an offence under the Corruption Act, 1992 (Act No. 94 of 1992), or any offence involving dishonesty, and has been sentenced there for to imprisonment without the option of a free. (2) A member of the Council shall vacate his or her o~ce if he or she (a) becomes subject to any disqualification referred to in subsection (l); (b) becomes mentally incompetent; (c) by written notice resigns as a member; (~ is discharged of his or her office by the Minister under section 4 (8); (e) is in terms of the provisions of the Electoral Act, 1993 (Act No. 202 of 1993), nominated as a candidate for election as a member of Parliament; or ~ is in terms of the provisions of the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996), elected as a member of Parliament or holds a political office at a provincial or local government level.
6
Term of office of member of Council.—A member of the Council shall be appointed
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AI-assisted research summary: A Council member may be appointed for up to three years and may be reappointed for one further term.

6. Term of office of member of Council.—A member of the Council shall be appointed for no more than three years but he or she may be reappointed for one firther term.
7
Functions of Council.—The functions of the Council shall be t~
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AI-assisted research summary: The Council must protect members’ interests and carry out a range of oversight, advisory, complaint-handling, information, and rule-making functions.

7. Functions of Council.—The functions of the Council shall be t~ (a) protect the interests of the members at all times; (Issue No 33- Supplemenfa~) 113 STATUTES OF ~E REPUBLIC OF SOUTH AFRICA–MEDICME, DENTIS~Y AND P~ACY Medical Schemes Act, No. 131 of 1998 SS.7–8 SS.7–8 (b) (c) (4 (e) w (g) (h) control and co-ordinate the tictioning of medical schemes in a manner that is complementary with the national health policy; make recommendations to the Minister on criteria for the measurement of quali~ and outcomes of the relevant health services provided for by medical schemes, and such other services as the Council may from time to time deter- mine; investigate complaints and settle disputes in relation to the affairs of medical schemes as provided for in this Acfi collect and disseminate information about private health care; make rules, not inconsistent with the provisions of this Act for the purpose of the petiormance of its functions and the exercise of its powers; advise the Minister on any matter concerning medical schemes; and perform any other finctions conferred on the Council by the Minister or by this Act.
8
Powers of Council.—~e Council shall, in the exercise of its powers, be entitled t~
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AI-assisted research summary: The Council has power to manage staff, property, contracts, finances, exemptions, and related administrative steps.

8. Powers of Council.—~e Council shall, in the exercise of its powers, be entitled t~ (a) (b) (c) (4 (e) w k) (h) (i) 0) (k) appoint such staff as the Council may deem necessary to employ to assist the Council in the performance of its tictions and the execution of its duties; hire, purchase or otherwise acquire such moveable or immovable property for the performance of its tictions, and may let, sell or otherwise dispose of such property; enter into an agreement with any person including the State or any other institu- tion for the performance of any specific act or function or the rendering of any service; insure itself against any loss, damage, risk or liability which it may suffer or incur; approve business plans and the budget for the Council and the finctions per- formed by the Registrar; approve the registration, suspension, and cancellation of registration, of medical schemes or a benefit option; invest, loan, advance on interest and place on deposit, moneys not needed immediately for the current expenditure of the Council or the finctions per- formed by the Registrar or to deal therewith in any other way against such securities and in such manner as the Council may determine from time to time, and to convert investments into money, adjust such securities, re-invest the pro- ceeds thereof or to deal therewith in any other manner as determined by the Council; exempt, in exceptional cases and subject to such terms and conditions and for such period as the Council may determine, a medical scheme upon written application from complying witi any provision of this Act; authorise the Registrar from time to time to sign any contract, cheque or other document which binds the Council or which authorises any action on behalf of the Council; determine the terms and conditions of service of any person appointed by the Council or who is under contract; and in general, tie any appropriate steps which it deems necessary or expedient to perform its functions in accordance with the provisions of this Act. .- (Issue No 33- Supp/emen~a~) 115 STATUTES OF THE REPUBLIC OF SOUTH AFRICA–MEDICINE , DENTISTRY AND PHARMACY Medical Schemes Act, No. 131 of 1998 55. 9– 12 Ss. 9 – 12 90 Committees of Council.—( 1 ) me Council may— (a) appoint from amongst ifi members an executive committee consisting of the chairperson, the vice-chairperson and three other members to attend to the day to day tasks of the Council, and may delegate to such executive committee such functions and powers as it may from time to time determine; and (b) appoint from amongst its members or any other persons, any other committee in regard to any matter falling within the scope of the Council’s finctions and powers under this Act, and may delegate to any such committee such of its functions and powers as it may determine from time to time. (2) me chai~erson of the Council shall be the chai~erson of the executive committee and in his or her absence the vice-chairperson shall act as chairperson. (3) Any other committee appointed by the Council shall elect its own chairperson. (4) All resolutions taken by the executive committee or any other committee shall be by a majority vote. (5) me quorum for a meeting of the Council or any committee shall be half of the members of the Council or of such committee plus one member.
10
Meetings of Council.<1) me Council shall hold at least four ordinary meetings
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AI-assisted research summary: The Council must hold at least four ordinary meetings each year, and its executive committee must meet at least monthly unless the chairperson sets different intervals.

10. Meetings of Council.<1) me Council shall hold at least four ordinary meetings each year. (2) Special meetings of the Council may be convened by the chairperson or at the written request of the majority of the members setting forth clearly the purpose for which the meeting is to be held. (3) me Minister may at any time request that a meeting of the Council be convened in order to advise him or her on a specific matter. (4) me executive committee shall meet at least once a month or at such intervals as the chairperson may deem it necessary for the efficient performance of the Council’s functions. (5) me Council may determine its own rules regarding the procedures at its meetings or those of its committees. (6) All resolutions taken by the Council shall be by a majority vote.
11
Remuneration of members of Council and committees.—~e chai~erson,
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AI-assisted research summary: Certain Council and committee members are to be paid remuneration and allowances from Council funds, as determined by the Minister with the Finance Minister’s concurrence.

11. Remuneration of members of Council and committees.—~e chai~erson, vice-chairperson, other members of the Council and members of committees of the Council who are not members of the Council, excluding any such member— (a) who is in the full-time service of the State; or (b) who is in the full-time service of an employer by whom such member is remu- nerated in respect of such service and with whose consent such member was appointed as such, shall be paid such remuneration and allowances out of the funds of the Council as the Minister, with the concurrence of the Minister of Finance, may determine from time to time.
12
Funds of Council.—( 1) fie funds of the Council shall consist of—
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AI-assisted research summary: The Council must manage its funds in specified ways, including banking, reporting donations, and using the funds for its and the Registrar’s expenses.

12. Funds of Council.—( 1) fie funds of the Council shall consist of— (a) moneys appropriated by Parliament on such terms and conditions as the Minis- ter, with the concurrence of the Minister of Finance, may determine; (b) fees raised on services rendered by the Registrar in the performance of his or her &nctions under the provisions of this Act; (c) penalties contemplated in section 66 (3); and (Issue No 33- Supplementa~) 117 STA~ OF ~E REPUBLIC OF SOUTH AFWCA–MEDIC~, DENTISTRY AND PHARMACY Mdical Schem~ Act, No. 131 of 1998 Ss. 12– 14 Ss. 12 – 14 .- (~ interest on overdue fees and penalties in respect of services rendered by the Registrar. (2) me Counc& (a) may accept moneys or other goods donated or bequeathed to the Council; and (b) shall spec@ details of any such donation or bequest in the annual report to the Minister. (3) me Council shall utilise its tids for the defrayal of expenses incurred by tie Councd and the office of the Registrar in the performance of their finctions under this Act. (4) me Council shall cause an account to be opened with an institution registered as a bank and sha~ deposit in that account au moneys received in terms of this section. (5) me Council may invest money, which is deposited in terms of subsection (4) and which is not required for immediate use, in any manner as it may deem fit. (6) Any money which at the close of the Council’s financial year stands to the credit of the Council shall be carried forward to the next financial year as a credit in the account of the Council.
13
Accounting officer.+1) me Registrar shall be the accounting officer of the
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AI-assisted research summary: The Registrar must account for Council money, keep proper financial records, and prepare annual financial statements within four months after each financial year end. Those records and statements must be audited by the Auditor-General.

13. Accounting officer.+1) me Registrar shall be the accounting officer of the Council charged with accounting for dl moneys received and payments authorised by and made on behalf of the Council and the Registrar. (2) me financial year of the Council shall endon31 December in each year. (3) me Registrar shal> (a) keep fuU and proper records of all moneys received and expenses incurred by, and of d assets, liabtities and fucial transactions of, the Council and the Regis&, and (b) as soon as is practicable, but not later than four months after the end of each fmcti year refaed to in subsection (2), prepare annual financial statements in respect of the financial year in question. (4) me records and annual fucial statements referred to in subsection (3) shall be audited by the Auditor-General. (5) Any moneys payable to the Council in terms of this Act, shall be a debt due to the Council and recoverable by the Registrar in any competent court.
14
Annual repofi.+ 1 ) me Councd shaU submit to the Minister before the end of
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AI-assisted research summary: The Council must submit an annual report to the Minister by the end of June each year and include audited financial statements and notes.

14. Annual repofi.+ 1 ) me Councd shaU submit to the Minister before the end of June of each year a report on the Council’s activities during the previous financial year. (2) fie report refined to in subsection (1) shall be accompanied by audited financial statements and notes thereon in respect of the fmcial year concerned. (3) me fmcial statements referred to in subsection (2) shall— (a) be in conformity with general accepted accounting practice; (b) fairly present the state of tiairs and functions of the Council and the results thereof and of the Regis~, and (c) refer to any material matters not specifically required in terms of this Act which have affected or are Wely to affect the affairs of the Council and the Registrar. (4) me Council SW publish or make available the annual report and audited financial statements after submission thereof to the Minister. (Issue No 33- Supplementa~) 119 STAmTm OF m mP~LiC OF SODTH AFRICA–MD]CmE, DENTISTRY AND PHARMACY Medical Schemes Act, No. 131 of 1998 Ss. 15– 19 Ss. 15– 19
15
Consultation beWeen Mnister and Council.+1) me Council may consult with
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AI-assisted research summary: The Council may consult the Minister, and the Minister may consult the Council, on matters under the Act and related matters they consider necessary.

15. Consultation beWeen Mnister and Council.+1) me Council may consult with the Minister in the exereise of the powers and the performance of the functions under this Act or on any other law, and in connection with any other matter which the Council deems neces- sary. (2) me Minister may consult with the Councfl on any matter falling under this Act.
16
Cases of improper or disgraceful conduct.—~enever it appears to the Council—
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AI-assisted research summary: If the Council thinks a registered person’s conduct is improper or disgraceful, it must report the matter to the body or organisation with jurisdiction; if it thinks an offence was committed, it must refer the matter to the National Prosecuting Authority.

16. Cases of improper or disgraceful conduct.—~enever it appears to the Council— (a) that the conduct of any person registered under any Act of Parliament which regulates the professional conduct of any health care supplier constitutes improper or disgraceti conduct relating to a medical scheme, the Council shall report this matter to any body or organisation which has jurisdiction over the person concerned; or (b) that an offence has been committed, the Council shall refer the matter to the Natioml Prosecuting Authority.
17
Liquidation.+1) me Council shall only be placed under liquidation by an Act of
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AI-assisted research summary: The Council may be liquidated only by an Act of Parliament, and if it is liquidated, its assets and liabilities pass to the State.

17. Liquidation.+1) me Council shall only be placed under liquidation by an Act of Parliament. (2) k the event of the liquidation of the Council, the assets and liabilities of the Council, if any, shall accrue to the State. Part 2: Registrar, Depu~ Registrar and stafof Council

Part

Part 2: Registrar, Depu@ Registrar and staff of Council

18
Appointment of Registrar and Deputy Registrar of Medical Schemes
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AI-assisted research summary: This section is about the appointment of a Registrar and a Deputy Registrar for medical schemes.

18. Appointment of Registrar and Deputy Registrar of Medical Schemes
19
Staff of Council
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AI-assisted research summary: Section heading: “Staff of Council” in Chapter 4 (Medical Schemes).

19. Staff of Council CHAPTER 4 MEDICAL SCHEMES

Part

CHAPTER 4

20
Business of medical scheme
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AI-assisted research summary: Section 20 concerns the business of a medical scheme.

20. Business of medical scheme
21
Use of designation “medical scheme”
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AI-assisted research summary: Section 21 concerns the use of the designation “medical scheme”.

21. Use of designation “medical scheme”
22
Application for registration
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AI-assisted research summary: This section is titled “Application for registration.”

22. Application for registration
23
Name of medical scheme and change of name
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AI-assisted research summary: This section is about the name of a medical scheme and changing that name.

23. Name of medical scheme and change of name
24
Registration as medical scheme
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AI-assisted research summary: This section is titled “Registration as medical scheme.”

24. Registration as medical scheme
25
Notification of registration
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AI-assisted research summary: Notification of registration.

25. Notification of registration
26
Effect of registration
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AI-assisted research summary: This section is titled “Effect of registration.”

26. Effect of registration
27
Cancellation and suspension of registration
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AI-assisted research summary: This section is titled “Cancellation and suspension of registration.”

27. Cancellation and suspension of registration
28
Prohibition of membership of, and claims against, more than one medical scheme
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AI-assisted research summary: This section prohibits membership of, and claims against, more than one medical scheme.

28. Prohibition of membership of, and claims against, more than one medical scheme CHAPTER 5 RULES OF MEDICAL SCHEME
20
Business of Medical Scheme.+1) No person shall carry on the business of a
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AI-assisted research summary: A person may not run a medical scheme business unless registered under section 24, and a medical scheme may not buy insurance for a relevant health service except to reinsure a liability under section 26(1)(b).

20. Business of Medical Scheme.+1) No person shall carry on the business of a medical scheme unless that person is registered as a medical scheme under section 24. (2) No medical scheme shall purchase any insurance policy in respect of any relevant health service other than to reinsure a liability in terms of section 26 (1) (b).
21
Use of designation “medical scheme”.—No person shall, without the consent of the
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AI-assisted research summary: A person may not use a business name containing “medical scheme” or a similar misleading name without the Registrar’s consent, unless the business is registered under the Act.

21. Use of designation “medical scheme”.—No person shall, without the consent of the Registrar, apply to his or her business a name which includes the words “medical scheme” or any other name which is calculated to indicate, or is likely to lead persons to believe that he or she carries on the business of a medical scheme, unless such business is registered under this Act.
22
Application for registration.—( 1) Any person who wishes to carry on the business
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AI-assisted research summary: A person who wants to carry on the business of a medical scheme must apply to the Registrar for registration, and the application must include the prescribed documents and particulars.

22. Application for registration.—( 1) Any person who wishes to carry on the business of a medical scheme shall apply to the Registrar for registration under this Act. (2) An application under subsection (1) shall be accompanied by such documents and particulars as maybe prescribed from time to time.
23
Name of medical scheme and change of name.—(1) The Registrar shall not regis-
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AI-assisted research summary: The Registrar cannot register or rename a medical scheme using a prohibited name, and a medical scheme generally must use only its registered name unless the Registrar approves an exception.

23. Name of medical scheme and change of name.—(1) The Registrar shall not regis- ter a medical scheme under a name, nor change the name of a medical scheme to a nme— (a) which has aheady been registered; (b) which so closely resembles the name of a medical scheme already registered that the one is likely to be mistaken for the other; or (c) which is likely to mislead the public. (2) A medical scheme shall not use or refer to itself by a name other than the name under which it is registered or a literal translation or an abbreviation thereof which has been approved by the Registrar. (3) A medical scheme may, with the consent of the Registrar, in conjunction with its registered name, use, or refer to itself by, the name of a medical scheme with which it has amalgamated or which it has absorbed or, in the case of a change of name, the name by which it was previously known. (4) A medical scheme shall not change its name without the prior written consent of the Registrar.
24
Registration as medical scheme.+1) The Registrar shall, if he or she is satisfied
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24. Registration as medical scheme.+1) The Registrar shall, if he or she is satisfied that a person who carries on the business of a medical scheme which has lodged an application in terms of section 22, complies or will be able to comply with the provisions of this Act, register the medical scheme, with the concurrence of the Council, and impose such terms and conditions as he or she deems necessary. (Issue No 33- Supplemental) 123 STATUTES OF THE WPUBLIC OF Soum AFRICA–MEDICmE, DENTISTRY AND PHAWCY Medical Schemes Act, No. 131 of 1998 SS. 24-26 SS. 24 – 26 (2) No medical scheme shall be registered ~nder this section unless the Council is sat- isfied that— (a) a member of the board of trustees or the principal officer of the proposed medical scheme is a fit and proper person to hold the office concerned; (b) the medical scheme complies with or will be able to comply with any other provision of this Act; (c) the medical scheme is or will be financially sound; (~ the medical scheme has a sufficient number of members who contribute or are likely to contribute to the medical scheme; (e) the medical scheme does not or will not unfairly discriminate directly or indi- rectly against any person on one or more arbitrary grounds including race, gen- der, marital status, ethnic or social origin, sexual orientation, pregnancy, disability and state of health; and ~ the registration of the medical scheme is not contrary to the public interest. (3) me Registrar shall transmit to the applicant a certificate of registration and a copy of the rules of the medical scheme reflecting the date of registration of such rules. (4) If an application for registration is rejected, the Registrar shall in writing indicate to the applicant in what respect the medical scheme in question does not comply with the provi- sions of this Act. (5) me Registrar may demand from the person who manages the business of a medical scheme which is in the process of being established, such financial guarantees as will in the opinion of the Council ensure the financial stability of the medical scheme.
25
Notification of registration.—~e Registrar shall publish in the Gazette a notifica-
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AI-assisted research summary: The Registrar must publish a Gazette notice of a medical scheme’s registration.

25. Notification of registration.—~e Registrar shall publish in the Gazette a notifica- tion of the registration of a medical scheme setting out— (a) the name and address of the medical scheme; (b) the date of registration; and (c) any terms and conditions imposed.
26
Effect of registration.—( 1 ) Any medical scheme registered under this Act shall—
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AI-assisted research summary: Registered medical schemes must operate as corporate bodies, keep their money in a controlled bank account, and limit how scheme funds and business are handled.

26. Effect of registration.—( 1 ) Any medical scheme registered under this Act shall— (a) become a body corporate capable of suing and being sued and of doing or causing to be done all such things as may be necessary for or incidental to the exercise of its powers or the performance of its functions in terms of its rules; (b) assume liability for and guarantee the benefits offered to its members and their defendants in terms of its rules; and (c) establish a bank account under its direct control into which shall be paid every amount— (i) received as subscription or contribution paid by or in respect of a member; and (ii) received as income, discount, interest, accrual or payment of whatsoever kind. (2) No person shall have any claim on the assets or rights or be responsible for any liabilities or obligations of a medical scheme, except in so far as the claim has arisen or the responsibility has been incurred in connection with transactions relating to the business of the medical scheme. (Issue No 33- Supplemental) 125 -- ,- STATUTES OF THE REPUBLIC OF SOUTH AFWCA–MEDICNE, DENTISmY Am PH~CY Medical Schemes Act, No. 131 of 1998 as. 26 – 27 SS. 26 – 27 ,- (3) me assets, rights, liabilities and obligations of a medical scheme, including any assets held in trust for the medical scheme by any persou as existing immediately prior to its registration, shall vest in and devolve upon the medical scheme without any formal transfer or cession. (4) No amount shall be debited to the account contemplated in subsection 1 (c) other than— (a) payments by a medical scheme of any benefit payable under the rules of a medical scheme; (b) costs incurred by the medical scheme in the carrying on of the business as a medical scheme; or (c) amounts invested by the board of trustees in accordance with section 35 (7). (5) No payment in whatever form shall be made by a medical scheme directly or indi- rectly to any person as a dividend rebate or bonus of any kind whatsoever. (6) No person other than an employer shrdl receive, hold or in any manner deal with the subscription or contribution which is payable to a medical scheme by or on beha~ of a member of such medical scheme. (7) All subscriptions or contributions shall be paid directly to a medical scheme not later than three days after payment thereof becoming due. (8) me officer in charge of a deeds regis~ in which is registered any deed or other document relating to any asset or right which in terms of subsection (3) vests in or devolves upon a medical scheme, shall, upon production to him or her by the medical scheme of its certificate of registration and of the deed or other document aforesaid without payment of transfer duty, stamp duty, registration fees or charges, make the endorsements upon such deed or document and the alterations in his or her registers that are necessary by reason of such vesting or devolution. (9) All moneys and assets belonging to a medical scheme sha~ be kept by that medical scheme and every medical scheme or the administrator, as the case may be, shall maintain such books of accounts and other records as may be necessary for the purposes of such medical scheme. (10) Every medical scheme shall have a registered ofice in the Republic. (11) No medical scheme shall carry on any business other than the business of a medi- cal scheme and no medical scheme shall enroll or admit any person as a member in respect of any business other than the business of a medical scheme.
27
CanceUation and suspension of registration.<1) me Registrar may, with the
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AI-assisted research summary: The Registrar may cancel a medical scheme’s registration only after investigation, Council concurrence, and giving the scheme or its representative a chance to be heard; the Council may instead suspend cancellation in some cases.

27. CanceUation and suspension of registration.<1) me Registrar may, with the concurrence of the Council, after investigation and after having afforded the medical scheme, or its legal representative an opportunity of being heard cancel the registration of a medical scheme— (a) on proof that the medical scheme has ceased to operate; (b) if the medical scheme was registered by virtue of misleading information; (c) if the medical scheme is unable to maintain a fmancia~y sound condition as contemplated by this Act (~ if the medical scheme is unable to enroll within the period determined by the Council, or to maintain the minimum number of members required for the regis- tration of a medical scheme; and (e) if the medical scheme, after written notice from the Registrar, persists in violat- ing any provision of this Act. (Issue No 33- Supplementa~) 127 STATUTES OF THE RPUBLIC OF SOUTH AFRICA–MEDICNE, DENTISTRY AND PHARMACY SS. 27 – 29 Medical Schemes Act, No. 131 of 1998 SS. 27 – 29 (2) The Council may, in lieu of cancellation, suspend the cancellation, in terms of sub- section (1), if the Registrar is satisfied that the medical scheme will be able to rectify the situation contemplated in paragraph (c), (~ or (e) of subsection (1) in a manner consistent with the provisions of this Act. (3) The Registrar shall inform the medical scheme concerned of any decision taken in terms of subsection (1) by means of a written notice served upon the medical scheme and shall come into operation on a date specified in such notice.
28
Prohibition of membership of, and claims against, more than one medical
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AI-assisted research summary: A person may not belong to more than one medical scheme, be a dependant in more than one scheme arrangement, or claim or accept benefits from any scheme other than their own.

28. Prohibition of membership of, and claims against, more than one medical scheme.—No person shall— (a) be a member of more than one medical scheme; (b) be admitted as a dependant of— (i) more than one member of a particular medical scheme; or (ii) members of different medical schemes; or (c) claim or accept benefits in respect of himself or herself or any dependant from any medical scheme other than the medical scheme of which he or she is a member or a dependant. C~PTER 5 RULES OF MEDICAL SCHEME
29
Matters for which rules shall provide.+ 1) The Registrar shall not register a
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AI-assisted research summary: A medical scheme cannot operate, and the Registrar cannot register it, unless its rules include the matters listed here. The scheme also cannot cancel or suspend membership except on listed grounds, and it must not exclude or restrict eligible applicants except in the stated cases.

29. Matters for which rules shall provide.+ 1) The Registrar shall not register a medical scheme under section 24, and no medical scheme shall carry on any business, unless provision is made in its rules for the following matters: (a) The appointment or election of a board of trustees consisting of persons who are fit and proper to manage the business contemplated by the medical scheme. (b) The appoin~ent of a principal officer by the board of trustees who is a fit and proper person to hold such office. (c) The appointment, removal from office, powers and remuneration of officers of a medical scheme. (~ The manner in which contracts and other documents binding the medical scheme shall be executed. (e) The custody of the securities, books, documents and other effects of the medical scheme. ~ The appointment of the auditor of a medical scheme and the duration of such appointment. (g) The power to invest funds. (h) Subject to the provisions of this Act, the manner in which and the circumstances under which a medical scheme shall be terminated or dissolved. The appointment of a liquidator in the case of a voluntary dissolution. (i) ~) The settlement of any complaint or dispute. (k) The amendment of the rules in accordance with the provisions of section 31. (~ The giving of advance written notice to members of any change in contribu- tions, membership fees or subscriptions and benefits or any other condition affecting their membership. (m) The manner of calling the annual general meeting and special general meetings of members, the quorum necessary for the transaction of business at such meetings and the manner of voting thereat. (Issue No 33- Supp/emenfa~) 129 STATUTES OF THE REPUBLIC OF SOUTH AFRICA–MEDICNE. —– Medical Schemes Act, No. 131 of 1998 —, DENTISTRY AND P~ACY S. 29 S. 29 (n) me terms and conditions applicable to the admission of a person as a member and his or her defendants, which terms and conditions shall provide for the determination of contributions on the basis of income or the number of defend- ants or both the income and the number of defendants, and shall not provide for any other grounds, including age, sex, past or present state of health, of the applicant or one or more of the applicant’s defendants, the frequency of render- ing of relevant health services to an applicant or one or more of the applicant’s defendants other than for the provisions as prescribed. me scope and level of minimum benefits that are to be available to members and defendants as maybe prescribed. No limitation shall apply to the reimbursement of any relevant health service obtained by a member from a public hospital where this service complies with the general scope and level as contemplated in paragraph (o) and may not be different from the entitlement in terms of a service available to a public hospital patient. (9) me payment of any benefits according t~ (i) a scale, tariff or recommended guide; or (r) (s) (t) (u) (ii) specific directives prescribed in the rules of the medical scheme. me defendants of a member are entitled to participate in the same benefit option as the member. me continuation, subject to the prescribed conditions, of the membership of a member, who retires from the service of his or her employer or whose employ- ment is terminated by his or her employer on account of age, ill-health or other disability and his or her defendants. For continued membership of a member’s defendants, subject to the prescribed conditions, after the death of that member, until such dependant becomes a member of, or is admitted as a dependant of a member of another medical scheme. If the members of a medical scheme who are members of that medical scheme by virtue of their employment by a particular employer terminate their member- ship of the said medical scheme with the object of obtainfig membership of another medical scheme or of establishing a new medical scheme, such other or new medical scheme shall admit to membership, without a waiting period or the imposition of new restrictions on account of the state of his or her health or the health of any of his or her defendants, any member or a dependant of such fust mentioned medical scheme wh~ (i) is a person or persons contemplated in paragraph (s); or (ii) is a person or persons contemplated in paragraph (t). (2) A medical scheme shall not cancel or suspend a member’s membership or that of any of his or her defendants, except on the grounds of— (a) failure to pay, within the time allowed in the medical scheme’s rules, the mem- bership fees required in such rules; (b) failure to repay any debt due to the medical scheme; (c) submission of fraudulent claims; (~ committing any fraudulent act; or (e) the non-disclosure of material information. (Issue No 33- Supplementa~) 131 STATUTES OF THE REPUBLIC OF SOUTH AFRICA–MEDICINE, DENTISTRY AND PHAWACY Medical Schemes Act, No. 131 of 1998 SS. 29 – 31 SS. 29 – 31 (3) A medical scheme shall not provide in its rules— (a) for the exclusion of any applicant or a dependant of an applicant, subject to the conditions as may be prescribed, from membership except for a restricted mem- bership scheme as provided for in this Act; (b) for the exclusion of any applicant or a dependant of an applicant who would otherwise be eligible for membership to a restricted membership scheme; and (c) for the imposition of waiting periods or new restrictions on account of the state of health of any member who has been a member or a dependant of a member of another medical scheme for a continuous period of at least two years and whose membership has been terminated because of change of employment and who applies for membership within three months after the termination of mem- bership from the other medical scheme.
30
General provisions to be contained in rules.< 1) A medical scheme may in its
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AI-assisted research summary: A medical scheme may include specified benefit-related rules, and it must give every member a free detailed summary of the rules when the member is admitted.

30. General provisions to be contained in rules.< 1) A medical scheme may in its rules make provision for— (a) (b) donations to any hospital, clinic, nursing home, maternity home, infirmary or home for aged persons in the interest of all or some of its members; the granting of loans to any of its members or to make ex gratia payments on behalf of or to members in order to assist such members to meet commitments in regard to any matter specified in the definition of “business of a medical scheme” in section 1; (c) the contribution to any association instituted for the benefit of medical schemes; (4 (e) w the contribution to any fund of any kind whatsoever which is conducted for the benefit of the officers of the said medical scheme or to pay for insurance poli- cies on the lives of officers of the said medical scheme for the benefit of such officers or their defendants; the allocation to a member of a personal medical savings account, within the limit and in the manner prescribed from time to time, to be used for the payment of any relevant health service; or the membership of a minor who is assisted by his or her parent or guardian. (2) Notwithstanding the provisions of section 41 (1) and (2), a medical scheme shall provide free of charge to every member of that medical scheme on admission with a detailed summary of the rules specifying such member’s rights and obligations.
31
Amendment of rules.+1) A medical scheme may, in the manner provided for in
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AI-assisted research summary: A medical scheme may amend, rescind, or add rules, but changes are only valid if approved and registered by the Registrar. The Registrar can also direct a scheme to amend or apply a rule in a specified way.

31. Amendment of rules.+1) A medical scheme may, in the manner provided for in its rules, amend or rescind any of such rules or make any additional rule. (2) No amendment, rescission or addition of any rule referred to in subsection (1) shall be valid unless it has been approved by the Registrar in accordance witi any directive given by the Council and registered as contemplated in subsection (3). (3) ti receipt of a written notice from a medical scheme setting out the particulars of any amendment or rescission of its rules, certified by the principal officer, the chairperson and one other member of the board of trustees as having been adopted in accordance with the provisions of the rules of the medical scheme, the Registrar shall— (Issue No 33- Supplemenfa~~) 133 ., STATUTSS OF THE WPUBLIC OF SOUTH AFRICA–MEDICNE, DENTISTRY AND PHAWCY 55.31–34 Medical Schemes Act, No. 131 of 1998 Ss. 31 –34 (a) if he or she is satisfied that the amendment or rescission of the rules will not be mfati to members or will not render tie rules of&e medical scheme inconsis- tent with this Act, register the amendment or the rescission of the rules and return it to the medical scheme with the date of registration endorsed thereon; or (b) if he or she is not so satisfied, in writing advise the medical scheme accordingly and indicate the reasons for his or her rejection of the amendment or rescission. (4) The Registrar may order a medical scheme t~ (a) within a period of 30 days as from the date on which he or she addressed the request to the medical scheme concerned, amend the rules in the reamer indi- cated by him or her; or (b) apply in the manner indicated by him or her, any rule of such medical scheme which is, in his or her opinion, being applied in a manner which is inconsistent with the provisions of this Act.
32
Binding force of rules.—The rules of a medical scheme and any amendment thereof
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AI-assisted research summary: Medical scheme rules and any amendment to them are binding on the scheme, its members, officers, and certain claimants.

32. Binding force of rules.—The rules of a medical scheme and any amendment thereof shall be binding on the medical scheme concerned, its members, officers and on any person who claims any benefit under the rules or whose claim is derived from a person so claiming. CHAPTER 6 BENEFIT OPTIONS

Part

CHAPTER 5

29
Matters for which rules shall provide
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AI-assisted research summary: Rules must provide for the matters covered by this section.

29. Matters for which rules shall provide
30
General provisions to be contained in rules
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AI-assisted research summary: Section heading only: general provisions to be contained in rules.

30. General provisions to be contained in rules
31
Amendment of rules
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AI-assisted research summary: This section is titled “Amendment of rules.”

31. Amendment of rules
32
Binding force of rules
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AI-assisted research summary: Section 32 is titled “Binding force of rules” under Chapter 6, Benefit Options.

32. Binding force of rules CHAPTER 6 BENEFIT OPTIONS

Part

CHAPTER 6

33
Approval and withdrawal of benefit options
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AI-assisted research summary: This section concerns approval and withdrawal of benefit options.

33. Approval and withdrawal of benefit options
34
Prohibition on cession and attachment of benefits
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AI-assisted research summary: Section 34 is titled “Prohibition on cession and attachment of benefits.”

34. Prohibition on cession and attachment of benefits
35
Financial arrangements
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AI-assisted research summary: This section is titled Financial arrangements.

35. Financial arrangements
36
Auditor and audit committee
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AI-assisted research summary: Section heading: Auditor and audit committee.

36. Auditor and audit committee
37
Annual financial statements
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AI-assisted research summary: Section title: Annual financial statements.

37. Annual financial statements
38
Registrar may reject returns
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AI-assisted research summary: The Registrar may reject returns.

38. Registrar may reject returns CHAPTER 7 FINANCIAL MATTERS CHAPTER 8 DOCUMENTS
33
Approval and withdrawal of benefit options.+ 1) A medical scheme shall apply
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AI-assisted research summary: A medical scheme with more than one benefit option must apply to the Registrar for approval, and the Registrar may only approve if the option meets stated financial and benefit criteria.

33. Approval and withdrawal of benefit options.+ 1) A medical scheme shall apply to the Registrar for the approval of any benefit option if such a medical scheme provides members with more than one benefit option. (2) The Registrar shall not approve any benefit option under this section unless the Council is satisfied that such benefit option— (a) includes the prescribed benefits; (b) shall be self-supporting in terms of membership and financial performance; (c) is financially sound; and (~ will not jeopardise the financial soundness of any existing benefit option within the medical scheme. (3) The Registrar may demand from the principal officer such financial guarantees as will in the opinion of the Council ensure the financial soundness of benefit options. (4) The Registrar may, on account of an inspection or investigation in terms of this Act or on account of any report, document, statement or information fimished to him or her, if he or she is of the opinion that a benefit option is or may not be financially sound, withdraw the approval of such benefit option and the medical scheme shall amend its rules accordingly with effect from the date directed by notice by the Registrar. (5) The Regis&ar may amend the rules of a medical scheme if such medical scheme fails to amend its rules as directed by the Registrar under the provisions of subsection (4) within the period specified in the notice, and such amendment shall be deemed to be an amendment within the meaning of the provisions of section 31.
34
Prohibition on cession and attachment of benefits.+ 1) No benefit or right in
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AI-assisted research summary: Benefits payable under this Act cannot be assigned, transferred, pledged, hypothecated, attached, or executed against. A medical scheme may withhold, suspend, or stop payment if a member tries to do those things.

34. Prohibition on cession and attachment of benefits.+ 1) No benefit or right in respect of a benefit payable under this Act shall be capable of being assigned or transferred or otherwise ceded or of being pledged or hypothecated or be liable to be attached or subjected to any form of execution under a judgement or order of a court of law. .-. (Issue No 33- Supplementa~) 135 STA~ OF m WPUBLIC OF Sow A~CA–MEDICmE, DENTISTRY AND P~ACY Medical Schem~ Act, No. 131 of 1998 Ss. 34-35 Ss. 34 – 35 (2) A medical scheme may withhol~ suspend or discontinue the payment of a benefit to which a member is entitied under this Actor any right in respect of such benefit or payment of such benefit to such a member, if a member attempts to assign or transfer or otherwise cede or to pledge or hypothecate such benefit. CW~R 7 FINANCML MATTERS
35
Financial arrangements.+ 1) A medical scheme shall at all times maintain ifi
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AI-assisted research summary: A medical scheme must keep its business financially sound, hold enough assets, avoid certain asset and lending restrictions, and notify the Registrar within 30 days if it fails to comply.

35. Financial arrangements.+ 1) A medical scheme shall at all times maintain ifi business in a financially sound condition by— (a) having assets as contemplated in subsection (3); (b) provitig for its liabilities; and (c) generally conducting its business so as to be in a position to meet its liabilities at all times. (2) A medical scheme shall be deemed to have failed to comply with the provisions of subsection (1) if it does not comply with subsection (3), (4), (5), (6) or (7). (3) A medicrd scheme shall have assets, the aggregate value of which, on any day, is not less than the aggregate of— (a) the aggregate value on that day of its liabilities; and (b) the nett assets as may be prescribed. (4) A medical scheme s~l not be deemed to hold an asset for the purposes of this Act to the extent to which such asset is encumbered. (5) A medical scheme sha~ have such assets in the Republic in the particular kinds or categories as maybe prescribed. (6) A medical scheme sha~ not— (a) encumber its assets; (b) aflow its assets to be held by another person on its behalfi (c) directiy or indirecdy bonow money; or (~ by means of suretyship or any other form of personal security, whether under a Pm or accessory obligation, give security in relation to obligations between other persons, without the prior approval of the Council. (7) Subject to the provisions of this section a medical scheme may invest its funds in any manner provided for by its roles. (8) A medical scheme shall not invest any of its assets in the business of or grant loans tp (a) an employer who participates in the medical scheme or any administrator or any arrangement associated with the medical scheme; (b) any other medical scheme; (c) any adrninistratoq and (~ any person associated with any of the abovementioned. (9) For the purposes of this Act the liabilities of a medical scheme shall include (a) the amount which the medical scheme estimates will be payable in respect of claims which have been submitted and assessed but not yet paid; (b) the amount which the medical scheme estimates will become payable in respect of claims which have been incurred but not yet submitted, and (c) the amount standing to the credit of a member’s personal savings account. (Issue No 33- Supplementa~) 137 STATUTES OF THE REPUBLIC OF SOUTH AFWCA–MEDICNE, DE~ISTRY ND PHAWCY Medical Schemes Act, No. 131 of 1998 SS. 35 – 36 SS. 35 – 36 (10) A medical scheme which fails to comply with subsection(1) shall, within 30 days after becoming aware of i$ noti@ the Regis@ar Qf such failure and state the reasons for it. (11) me Registrar may, if a medical scheme gives notice to the Registrar in terms of subsection (10), or if the Registrar is satisfied that a medical scheme is failing, or is likely to fail within a reasomble peno~ to comply with subsection (l), (2), (3), (4), (5) (6) or (7) direct that the medical scheme by notice, submit to him or her, within a specfied penod— (a) specified information relating to the nature and causes of the failure; and (b) its proposals as to the course of action that it should adopt to ensure compliance therewith. (12) me Registrar may, when he or she has received the information referred to in subsection (11), and in concurrence with the Council— (a) authorise the medical scheme concerned, by notice, to adopt a course of action, approved by him or her after having considered those proposals and which he or she is satisfied wifl reasonably ensure that the medical scheme complies with subsection (1), (2), (3), (4), (5), (6) or (7) within a specified time and he or she may at the same time, or at any time thereafter, by notice authorise the modifi- cation of that course of action to the extent he or she deems appropriate in the circumstances; or (b) if he or she is satisfied that it is necessary to do so in the interest of the members of the medical scheme, at the same time, or at any time thereafter, and notwith- standing any steps aheady taken by him or her under paragraph (a), act in terms of any other provision of this Act. (13) If a medical scheme fails to comply with any provision of this section, every offi- cer of the medical scheme who is a party to the failure, shall be guil~ of an offence.
36
Auditor and audit committee.<1) A medical scheme shall appoint at least one
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AI-assisted research summary: A medical scheme must appoint at least one auditor, and its audit committee rules are set out here.

36. Auditor and audit committee.<1) A medical scheme shall appoint at least one auditor. (2) me appointment of an auditor, other than the re-appointment that does not involve a break in the continuity of the appointment shall not take effect unless it has been approved by the Registrar. (3) A medical scheme shall not appoint as its auditor— (a) a person who is a member of its board of tmstees; (b) a person who is not engaged in pubtic practice as an auditor; or (c) a person who is disqualified from acting as an auditor in terms of section 275 of the Companies Act 1973 (Act No. 61 of 1973). (4) me approval of an auditor of a medical scheme by the Registrar shall not lapse if an auditor of a medical scheme is a fm as contemplated in the Public Accountants’ and Auditors’ Act, 1991 (Act No. 80 of 1991), whose membership of the fm has changed, if not fewer than half of the members after the change, were members when the appointment of the fm was last approved by the Registrar. (5) Notwithstanding anything to the contrary contained in any other law, the auditor of a medical scheme shall— (a) whenever he or she furnishes a report or other document of particulars as contemplated in section 20 (5) (b) of the Public Accountants’ and Auditors’ Act, 1991, also tish a copy thereof to the Registrar; .- (Issue No 33- Supp/ementa~) 139 STATUTES OF THE WPUBLIC OF SOUTH AFRICA–MEDICWE, DENTISTRY AND PHAWACY Medical Schemes Act, No. 131 of 1998 S. 36 S. 36 (b) inform the Registrar in writing of any matter relating to the affairs of the medi- cal scheme of which he or she became aware in the petiormance of his or her tinctions as auditor and which, in the opinion of the auditor, may prejudice the medical scheme’s ability to comply with this Chapter; (c) if his or her appointment is terminated for any reason— (i) submit to the Registrar a statement of what he or she believes to be the reasons for that termination; and (ii) if he or she would, but for that termination, have had reason to submit to the medical scheme a report as contemplated in section 20 (5) (a) of the Public Accountants’ and Auditors’ Act, 1991, submit such a report to the Registrar; and (~ if requested by the Registrar to do so, finish him or her with written informa- tion relating to any matter referred to in this Chapter. (6) An auditor who in terms of this section furnishes a report in good faith shall not contravene a provision of a law or breach a provision of a code of professional conduct, to which he or she is subject to. (7) An auditor’s failure, in good faith, to fimish a report or information in terms of this section shall not confer upon any person a right of action against the auditor which, but for that failure, that person would not have had. (8) me auditor shall, in addition to the duties imposed upon the auditor of a medical scheme by any other Act— (a) in respect of a return or statement which he or she is required to examine in tem of this Chapter, certify whether that retire or statement complies with the requirements of this Act and whether the return or statement, including any annexure thereto, presents fairly the matters dealt with therein as if such return or statement were a financial statement contemplated in section 20 of the Public Accountants’ and Auditors’ Act, 199 1; and (b) carry out the other duties provided for in this Act. (9) me Registrar may, notwithstanding the provisions of any other Act, appoint an auditor for a medical scheme if that medical scheme for any reason fails to appoint an auditor, and such an auditor shall be deemed to have been appointed by the medical scheme. (10) me board of trustees of a medical scheme shall, subject to the provisions of sub- section (13), appoint an audit committee of at least five members of which at least two shall be members of that board of trustees. (11) me majority of the members, including the cha~erson of the audit committee, shall be persons who are not officers of the medical scheme or the administrator of the medical scheme, the controlling company of the administrator or any subsidiary of its controlling company. (12) me objects of the audit committee shall, inter alia, be tti (a) assist the board of trustees in its evaluation of the adequacy and efficiency of the internal control systems, accounting practices, information systems and auditing processes applied by that medical scheme or its administrator in the day-to-day management of its business; (b) facilitate and promote communication and liaison regarding the matters referred to in paragraph (a) or a related matter, between the board of trustees, principal officer, administrator and, where applicable, the internal audit staff of the medi- cal scheme; (Issue No 33- Supplementa~) 141 STATUTm OF TW WPUBLIC OF SOUTH AFWCA–MEDICN, DENTISmY ~D P~cY Medical Schemes Act, N? 131 of 1998 SS. 36 – 38 SS. 36-38 “- (c) recommend the introduction of measures which the cotittee believes may enhance tie credibility and objectivity of financial statements and reports con- cerning the affairs of the medical scheme; and (~ advise on any matter referred to the committee by the board of trustees. (13) me Council may, if it is satisfied that the appotitment of an audit committee, in a particular case, is inappropriate or impractical or would serve no useful purpose, subject to the conditions it deems fit to impose, exempt the medical scheme concerned from the requirements of subsection ( 10).
37
Annual financial statements.+ 1) me board of trustees shall in respect of every
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AI-assisted research summary: The board of trustees must prepare annual financial statements for each financial year and send them, with the board’s report, to the Registrar within four months after year-end.

37. Annual financial statements.+ 1) me board of trustees shall in respect of every financial year cause to be prepared annual financial statements and shall within four months after the end of a fwcial year furnish copies of the statements concerned together with the report of the board of trustees to the Registrar. (2) me annual financial statements referred to in subsection (1) shall be tiished to the Registrar in the medium and form detetied by the Registrar and shall inter a/ia consist of— (a) a balance sheet dealing with the state of affairs of the medical scheme; (b) an income statement; (c) a cash-flow statement; (~ a report by the auditor of the medical scheme; and (e) such other returns as the Registrar may require. (3) me annual financial statements of a medical scheme shall, subject to the provisions of the Public Accountants’ and Auditors’ Act, 1991, be audited by an accountant and auditor registered in terms of that Act except where such accounts are to be audited by the Audi- tor-General in terms of any law. (4) me annual financial statements shall— (a) be prepared in accordance with general accepted accounting practice; (b) fairly present the state of affairs and the business of the medical scheme and the results thereof at the end of the financial year concerned and the surplus or deficiency of the medical scheme for that financial year; (c) by means of figures and a descriptive report, set out and explain any matter or information material to the affairs of the medical scheme; and (~ be accompanied by the management accounts in respect of every benefit option offered by the medical scheme indicating the financial performance thereof and the number of members enrolled per option. (5) me board of trustees’ report referred to in subsection (1) shall— (a) deal with every matter which is material for the appreciation by members of the medical scheme of the state of affairs and the business of the medical scheme and the results thereo~ and (b) contain relevant information indicating whether or not the resources of the medical scheme have been applied economically, efficiently and effectively.
38
Registrar may reject returns.—~e Registrar, if he or she is of the opinion that any
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AI-assisted research summary: The Registrar may reject a section 37 document if it does not comply with the Act or does not correctly reflect the medical scheme’s revenue, expenditure, or financial position.

38. Registrar may reject returns.—~e Registrar, if he or she is of the opinion that any document tished in terms of section 37 does not comply with any of the provisions of this Act or does not comectly reflect the revenue and expenditure or financial position, as the case may be, of that medical scheme, may reject the document in question, and in that event— (a) he or she shall notify the medical scheme concerned of the reasons for such rejection; and (Issue No 33- Supplementa~) 143 STATUTES OF T~ REPUBLIC OF SOUTH AFRICA–MEDICNE, DENTISTRY AND PWWCY Medical Schemes Act, No. 131 of 1998 SS. 38-41 SS. 38 –41 (b) the medical scheme shall be deemed not to have furnished the said document to the Registrar. CHAPTER 8 DOC~ENTS

Part

CHAPTER 8

39
Requirements in regard to documents to be deposited with Registrar
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AI-assisted research summary: Section 39 is titled “Requirements in regard to documents to be deposited with Registrar.”

39. Requirements in regard to documents to be deposited with Registrar
40
Effect of Registrar’s certificate on documents
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AI-assisted research summary: This section concerns the effect of the Registrar’s certificate on documents.

40. Effect of Registrar’s certificate on documents
41
Right to obtain copies of, or to inspect certain documents
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AI-assisted research summary: Section 41 is titled “Right to obtain copies of, or to inspect certain documents.”

41. Right to obtain copies of, or to inspect certain documents (Issue No 33- Supplementa~) 103 STATUTES OF THE REPUBLIC OF SOUTH AFRICA–MEDICINE, DENTISTRY AND PHAWACY Medical Schemes Act, No. 131 of 1998 CHAPTER 9 POWERS OF REGISTRAR
39
Requirements in regard to documents to be deposited with Registrar.+1) A
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AI-assisted research summary: Medical schemes must have certain documents signed or certified before filing them with the Registrar.

39. Requirements in regard to documents to be deposited with Registrar.+1) A medical scheme shall be deemed not to have complied with any provision of this Act which imposes upon such a medical scheme the obligation to fimish to the Registrar a document prepared by the medical scheme, udess such document is signed by the principal officer and one other person authorised in accordance with the rules of the medical scheme to sign docu- ments. (2) The following persons, other than an auditor or valuator, shall sign any document which in terms of any provision of this Act must be fimished by a medical scheme to the Registrar: (a) In the case of a board of trustees, the chairperson of the board of trustees, and by one other member of such board; and (b) in any other case, persons designated by the Registrar who exercise control over the business of the medical scheme concerned. (3) A medical scheme shall be deemed not to have complied with the provisions of section 38 unless any income statement, cashflow statement, balance sheet or return required to be submitted, is certified by the auditor of the medical scheme. (4) Any person who is required in terms of this Act to furnish to the Registrar— (a) any original document; or (b) a copy of any document, shall tiish one copy tiereof certified as correct— (i) in the case of a medical scheme, by its principal office~ and (ii) in any other case, by the person by whom such copy is required to be furnished, together with so many additional copies as the Registrar may require.
40
Effect of Registrar’s certificate on documents.—Every document which purports
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AI-assisted research summary: A document certified by the Registrar is to be treated as a certified document, and a certified copy is admissible as evidence as if it were the original.

40. Effect of Registrar’s certificate on documents.—Every document which purports to have been duly certified by the Registrar to be a document deposited at his or her office under this Act, or to be a copy of such a document, shall prima facie be deemed to be such a document, or a copy tiereof, and every such copy shall be admissible as evidence in a court of law as if it were the original document.
41
Right to obtain copies of, or to inspect certain documents.—( 1 ) A medical
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AI-assisted research summary: A medical scheme must provide copies of listed documents to a member on demand and on payment of a fee set by the scheme’s rules; members may inspect and make extracts without charge at the scheme’s registered office; any person may inspect, copy, or extract the same documents at the Registrar’s office on payment of the prescribed fee; the Registrar may waive fees for public interest reasons.

41. Right to obtain copies of, or to inspect certain documents.—( 1 ) A medical scheme shall deliver to a member on demand by such member, and on payment of such fee as may be determined by the rules of the medical scheme, a copy of any of the following docu- ments: (a) The rules of the medical scheme. (b) The latest annual financial statements prepared under section 37 (l). (c) Any other document referred to in section 37 (2) and (4) (~. (2) A member shall be entitled to inspect, without charge, at the registered office of a medical scheme of which he or she is a member, the documents referred to in subsection (1) and to make extracts therefrom. (3) Any person may, upon payment of the prescribed fee, inspect at the office of the Registrar any document referred to in subsection (1) and may make an extract thereof or obtain from the Registrar a copy thereof or extract therefrom. (Issue No 33- Supplementa~) 145 STATUTES OF THE ~PUBLIC OF SOUTH AFRICA–MEDICmE, DENTISTRY AND P~cY Medical Schemes Act, No. 13 I of 1998 Ss. 41-44 Ss. 41 – 44 (4) The Registrar may exempt any person from the obligation to pay fees under this section if the Registrar is satisfied that the inspection, copy or extract in question is desired for the purpose of furthering the public interest. C~PTER 9 PowEm OF REGISTMR
42
Registrar may require additional particulars.+ 1) The Registrar may, if he or
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AI-assisted research summary: The Registrar may ask a medical scheme’s principal officer for extra particulars, certificates, reports, or other information when needed.

42. Registrar may require additional particulars.+ 1) The Registrar may, if he or she is of the opinion that— (a) an application for registration of a medical scheme; (b) any amendment to the rules of a medical scheme; or (c) any statement, account, return or document relating to the financial condition of a medical scheme, does not disclose sufficient information to enable a decision to be made, request the principal officer of that medical scheme to furnish such additional particulars as the Registrar may deem necessary. (2) If the Registrar is of the opinion that a certificate or special report by an actuary or by the auditor of a medical scheme is necessary in regard to any matter set out in subsection (l), the principal officer of that medical scheme shall on request tiish such certificate or report as the Registrar may require. (3) The Registrar may require such information as to enable the Council to make rec- ommendations to the Minister on the matters referred to in section 7 (c).
43
Enquiries by Registrar.—The Registrar may address enquiries to a medical scheme
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AI-assisted research summary: The Registrar may ask a medical scheme questions about its business or transactions, and the scheme must reply in writing within 30 days unless the Registrar allows more time.

43. Enquiries by Registrar.—The Registrar may address enquiries to a medical scheme in relation to any matter connected with the business or transactions of the medical scheme, and the medical scheme shall reply in writing thereto within a period of 30 days as from the date on which the Registrar addressed the enquiry to it, or within such firther period as the Registrar may, at the request of the medical scheme, allow.
44
Inspections and reports.+1) A medical scheme shall, at the written request of the
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AI-assisted research summary: A medical scheme must provide records, statements, and other information when the Registrar requests them or during an inspection, and the Registrar may direct further reports, financial guarantees, and rule changes.

44. Inspections and reports.+1) A medical scheme shall, at the written request of the Registrar, or during an inspection of the affairs of a medical scheme, by the Registrar or such other person authorised by him or her, produce at any place where it carries on business, its books, documents and annual financial statements in order to enable the Registrar or such other person authorised by him or her to obtain any information relating to the medical scheme required in connection with the administration of this Act. (2) The Registrar, or such other person authorised by him or her, shall in addition to the powers and duties conferred or imposed upon him or her by this Act, have all the powers and duties confemed or imposed upon an inspector appotited under section 2 of the Inspection of Financial ktitutions Act, 1984 (Act No. 38 of 1984), as if he or she has been appointed an inspector under that Act. (3) Any reference in this Act to an inspection made under this section shall also be construed as a reference to an inspection made under the Inspection of Financial Institutions Act, 1984. (4) The Registrar may, at any time by notice in writing, direct a medical scheme to furnish to him or her within a period specified in that notice, or within such further period as the Registrar may allow— (a) a statement of its assets and liabilities, including contingent liabilities; and (Issue No 33- Supplementa~) 147 STAMES OF m REPUBLIC OF SOUTH AFRICA–MEDICNE, DENTISTRY AND PHWCY Medical Schemes Act, No. 131 of 1998 s. 44 s. 44 (b) any other document or information specified in the notice, relating to the fina- ncial Qr other affairs of the medical scheme over a period likewise specified. (5) me Registrar may direct that any statement furnished to him or her under subsec- tion (4), or any document so tiished and which relates to the financial affairs of that medical scheme, shall be accompanied by a report thereon by the auditor of the medical scheme, and in which the auditor shall stat+ (a) in what manner and to what extent he or she has satisfied himself or herself as to the amount of the liabilities and contingent liabilities shown in the statement; (b) in what manner and to what extent he or she has satisfied himself or herself as to the existence of the assets shown in the statement; (c) to what extent he or she has satisfied himself or herself that the particulars of such assets which are shown in the stitement are correct; (0 whether or not, in his or her opinion, the basis of valuation of each of the various kinds of assets adopted by the medical scheme is financially sound, (e) whether or not, in his or her opinion, the medical scheme is in a sound financial condition; ,- ~ if he or she is of the opinion that the medical scheme is not in a sound financial condition— (i) in what respects the condition of the medical scheme is in his or her opin- ion unsound; and (ii) what the causes or probable causes are of such unsound condition; @) such other particulars as he or she deems relevant for the purposes of this Act; and (h) such other particulars as the Registrar may deem necessary. (6) fie Registrar may, if he or she, on account of any statement, document or infor- mation furnished to him or her by virtue of subsection (4), deems it necessary in the interest of the members of the medical scheme concerned, and, after consultation with the Financial Services Board established by section 2 of the Financial Services Board Act, 1990 (Act No. 97 of 1990), by notice in writing direct the medical scheme to fimish to him or her a report compiled by an actuary, in the form and relating to the matters specified by the Registrar in the notice. (7) fie Registrar may, on the authority and in accordance with the instructions and directions of the Council, from time to time place any restriction on the administration costs of a medical scheme in respect of any financial year, and may for this purpose prescribe the basis on which such costs shall be calculated. (8) me Registrar may, if he or she is, on account of an inspection or investigation in terms of this Actor on account of any report, document, statement or information furnished to him or her under this section, of the opinion that a medical scheme is or maybe rendered not financially sound— (a) by notice in writing direct the medical scheme to take such steps as may be specified in the notice which are, in the opinion of the Registrar, necessary— (i) to ensure the financial soundness of the medical scheme; or (ii) in the interests of the members of the medical scheme; (b) at any time demand from the medical scheme such financial guarantees and guarantee deposits as will in the opinion of the Registrar ensure the financial stability of the medical scheme; and (Issue No 33- Supp/emenfa~) 149 ‘ti STAmS OF THE REPUBLIC OF Soum AFRICA–MEDICNE, DENTISTRY AND PH~CY Medical Schemes Act, No. 131 of 1998 55.44 – 47 55.44-47 (c) subject to the provisions of this Ac~ tie such other steps as may in his or her optilon be necessary to ensure the fwncial soundness of the medical scheme. (9) The Registrar may, for the purposes of paragraph (a) of subsection (8), by notice in writing direct the medical scheme concemed— (a) to amend, within a period specified in the notice, the rules of the medical scheme in the manner indicated in the notice; or (b) to conduct, within a period or for a period specified in the notice, the business of the medical scheme in a manner determined by the Registrar and specified in the notice. (10) The Registrar may, if a medical scheme fails to amend its rules as directed by the Registrar under subsection (9) (a) within the period specified in the notice concerned, amend such rules, and such amendment shall be deemed to be an amendment within the meaning of section 31.
45
Persons not registered to furnish information.<1) The Registrar may, by notice
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AI-assisted research summary: The Registrar may, by written notice, require a suspected unregistered medical-scheme operator to provide its rules and other information, and later require records or accounts if the person does not comply to the Registrar’s satisfaction.

45. Persons not registered to furnish information.<1) The Registrar may, by notice in writing, require any person who he or she has reason to suspect is carrying on the business of a medical scheme which is not registere~ to transmit to him or her, within a period stated in such notice, a copy of the rules, if any, under which such person is operating and such other information as he or she may require. (2) The Registrar may, if the person referred to in subsection (1) fails to comply with his or her requirements to his or her satisfaction, require such person to produce at any place where that person carries on the business in question, the records, documents, statements or accounts relating to that business in order to enable the Registrar to ascertain whether that business constitutes the business of a medical scheme.
46
Removal of member of board of trustees.+1) The Council may, by notice in
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AI-assisted research summary: The Council may remove a medical scheme board member by written notice if it believes the person is not fit and proper, but it must first give details, ask for comments, and consider any comments before issuing the notice.

46. Removal of member of board of trustees.+1) The Council may, by notice in writing, remove horn office a member of the board of trustees of a medical scheme if it has sufficient reason to believe that the person concerned is not a fit and proper person to hold the office concerned. (2) Tbe Council shall, before issuing the notice referred to in subsection (l), firnish such person with fun details of all the information the Council has in its possession in regard to any allegations of the member of the board of trustees not being a fit and proper person and to request that person to furnish the Council with his or her comments thereon within 30 days or such tier period as the Council may allow. (3) The Council may not issue the notice referred to in subsection (1) until it has con- sidered the comments, if any, referred to in subsection (2). C~PTER 10 C O m p laintS AND A P P E A L S
47
Complaints.+1) The Registrar shall, where a written complaint in relation to any
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AI-assisted research summary: If a written complaint is lodged with the Council, the Registrar must give the complained-against party the full complaint details and ask for written comments within 30 days, unless more time is allowed.

47. Complaints.+1) The Registrar shall, where a written complaint in relation to any matter provided for in this Act has been lodged with the Council, finish the party complained against with fu~ particulars of the complaint and request such party to furnish the Registrar with his or her written comments thereon within 30 days or such further period as the Registrar may allow. (2) The Registrar shall, as soon as possible stir receipt of any comments furnished to him or her as contemplated in subsection ( 1), either resolve the matter or submit the complaint together with such comments, if any, to the Council, and the Council shall thereupon tde all such steps as it may deem necessary to resolve the complaint. (Issue No 33- Supplemenfay) 151 STATUTES OF THE REPUBLIC OF SOUTH AFRICA–MEDICNE, DENTISTRY AND PH~CY Medical Schemes Act, No. 131 of 1998 SS. 48 – 49 SS. 48 – 49 ‘,-
48
Appeal to Council.+ 1) Any person who may be aggrieved by any decision relat-
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AI-assisted research summary: People aggrieved by a decision about a complaint or dispute may appeal to the Council, using an affidavit filed with the Registrar within the stated time.

48. Appeal to Council.+ 1) Any person who may be aggrieved by any decision relat- ing to the settlement of a complaint or dispute appeal against such decision to the Council. (2) me operation of any decision which is the subject of an appeal under subsection (1) shall be suspended pending the decision of the Council on such appeal. (3) An appeal contemplated in subsection (1) shall be in the form of an affidavit directed to the Council and shall be furnished to the Registrar not later than three months, or such further period as the Council may, for good cause shown, allow, after the date on which the decision concerned was made. (4) fie date, time and place for the hearing of an appeal shall be determined by the Council and shall, not less than 14 days before such hearing, be made known in writing by the Registrar to the parties concerned. (5) me persons contemplated in subsection (1) may appear before the Council and tender evidence or submit a written argument or explanation to the Council in person or through a representative. (6) me Council may for the purposes of an appeal— (a) in writing request any person who, in its opinion, maybe able to give material information concerning the subject of the appeal or who in its opinion has in his or her possession or custody or under his or her control any document which has any bearing upon the subject of the appeal, to appear before it at a time and place specified in the written request, to be examined or to produce that docu- ment, and may retain for examination any document so produced; (b) administer an oath to or accept an affmation from any person called as a witness at the appeal; and (c) call any person present at the hearing of the appeal as a witness and examine him or her and require him or her to produce any document in his or her pos- session or custody or under his or her control. (7) me procedure at the hearing of an appeal shall be determined by the Council. (8) me Council may after hearing the appeal confm or vary the decision concerned, or rescind it and give such other decision as it may deem just. (9) me decision of the Council shall be in writing and a copy thereof shall be fur- nished to the persons contemplated in subsection(1).
49
Appeal against decision of Registrar.<1) Any person who is aggrieved by any
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AI-assisted research summary: A person aggrieved by a Registrar decision may appeal to the Council within 30 days, unless the decision was made with the Council’s concurrence.

49. Appeal against decision of Registrar.<1) Any person who is aggrieved by any decision of the Registrar under a power conferred or a duty imposed upon him or her by or under this Act, excluding a decision that has been made with the concurrence of the Council, may within 30 days after the date on which such decision was given, appeal against such decision to the Council and the Council may make such order on the appeal as it may deem just. (2) me operation of any decision which is the subject of an appeal under subsection (1) shall be suspended pending the decision of the Council on such appeal. (3) me Registrar or any other person who lodges an appeal in terms of subsection (1) may in person or through a representative appear before the Council and tender evidence or submit any argument or explanation to the Council in support of the decision which is the subject of the appeal. (Issue No 33- Supplemental) 153 STATU~S OF T~ RPUBLIC OF SOUTH AFRICA-MEDICWE, DENTISTRY AND PHAWACY Medical Schemes Act, No. 131 of 1998 s. 50 s. 50
50
Appeal Board.< 1) mere is hereby established an Appeal Board, consisting of
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AI-assisted research summary: This section establishes an Appeal Board, lets aggrieved persons appeal certain decisions within 60 days on payment of the prescribed fee, and gives the Board hearing powers and related procedures.

50. Appeal Board.< 1) mere is hereby established an Appeal Board, consisting of three pe~ons appotited by the Mtister, of who~ (a) one shall be a person appointed on account of his or her knowledge of the law, who shall be the chairperson; and (b) two shall be persons appointed on account of their knowledge of medical schemes. (2) me Registrar shall designate a staff member to act as secreta~ of the Appeal Board. (3) Any person aggrieved by a decision of the Registrar acting with the concurrence of the Council or by a decision of the Council under a power conferred or a duty imposed upon it by or under this Act, may within a period of 60 days after the date on which such decision was given and upon payment to the Registrar of the prescribed fee, appeal against such decision to the Appeal Board. (4) Any person who lodges an appeal under subsection (3) shall submit with his or her appeal written arguments or explanations of the grounds of his or her appeal. (5) A member of the Appeal Board shall, if before or during tie hearing of any appeal it transpires that he or she has any direct or indirect personal interest in the outcome of that appeal, recuse himself or herself and shall be replaced for the duration of the hearing by— (a) in the case of the member referred to in subsection (1) (a), a person appointed by the Minister with due consideration of the provisions of that subsection; and (b) in the case of a member referred to in subsection 1 (b), a member appointed by the Minister under the provisions of that subsection. (6) A member of the Appeal Board shall hold office for a period of three years and shall on the expiration of his or her term of office be eligible for reappointment. (7) Subject to the provisions of subsection (l), any casual vacancy that occurs on the Appeal Board shall be filled by the appointment by the Minister of another person, and any person so appointed shall hold office for the unexpired period of office of his or her predeces- sor. (8) An appeal shall be heard on the date and at the place and time fxed by the Appeal Board and the secretary shall noti~ the appellant as well as the Council thereof in writing. (9) For the purpose of ascertainhg any matter relating to the subject of its investiga- tion, the Appeal Board shall have the powers which a High Court has to summon witnesses, to cause an oath or affmtion to be administered by them, to examine them, and to call for the production of books, documents and objects. (10) A summons for the attendance of a witness or for the production of any book, document or object before the Appeal Board shall be signed and issued by the secretary in a form prescribed by the chairperson and shall be served in the same manner as a summons for the attendance of a witness at a crimina1 trial in a High Court at the place where the attendance or production is to take place. (11) A witness shall, if required to do so by the chairperson of the Appeal Board, before giving evidence, take an oath or make an affmtion, which oath or affmation shall be administered by the chairperson. (Issue No 33- Supplemenfa~) 155 STATUTES OF THE REPUBLIC OF Sow AFNCA–MEDICWE, DENTISTRY AND PHAWACY Medical Schemes Act, No. 131 of 1998 s. 50 s. 50 (12) Any person who has been summoned to attend any sitting of the Appeal Board as a witness or who has given evidence before the Appeal Board shall be entitled to the same witness fees from pubhc funds, as if he or she had been summoned to attend or had given evidence at a criminal trial in a High Court held at the place of such sitting, and in connection with the giving of any evidence or the production of any book or document before the Appeal Board, the law relating to privilege as applicable to a witness giving evidence or summoned to produce a book or document in such a court, shall apply. (13) All the evidence and addresses heard by the Appeal Board shall be heard in pub- lic: Provided that the chairperson may, in his or her discretion, exclude from the place where such evidence is to be given or such address is to be delivered any class of persons or all persons whose presence at the hearing of such evidence or address is, in his opinion, not necessary or desirable. (14) me procedure at the hearing of an appeal shall be determined by the chairperson of the Appeal Board. (15) me appellant as well as the Registrar or the Council shall be entitled to be repre- sented at an appeal by a legal practitioner. (16) me Appeal Board may, after hearing the appeal— (a) confii, set aside or vary the relevant decision; or (b) order that the decision be given effect to. (17) me decision of a majority of the members of the Appeal Board shall be the deci- sion of the Appeal Board. (18) me decision of the Appeal Board shall be put in writing, and a copy thereof shall be furnished to the appellant as well as to the Council. (19) If the Appeal Board sets aside any decision by the Council, the prescribed fees paid by the appellant in respect of the appeal in question shall be refunded to him or her, and if the Appeal Board varies any such decision, it may in its discretion direct that the whole or any part of such fee be refunded to the appellant. (20) A member of the Appeal Board who is not in the full-time employment of the State, shall in respect of his or her services as such a member be paid such remuneration, including reimbursement for tinsport, traveling and subsistence expenses incurred by him or her in the performance of his or her functions as a member of the Appeal Board, as may from time to time be determined by the Minister with the concurrence of the Minister of Finance. (21) Any person who wilfully interrupts the proceedings of the Appeal Board or who wilfully hinders or obstructs the Appeal Board in the performance of its functions shall be guilty of an offence. (22) Any person summoned to attend and give evidence or to produce any book, document or object before the Appeal Board who, without sufficient cause, the onus of proof whereof shall rest upon him or her, fails to attend at the time and place specified in the sum- mons, or to remain in attendance until the conclusion of the appeal or until he or she is excused by the chairperson of the Appeal Board from further attendance, or having attended, refuses to be sworn or to make affmtion as a witness afier he or she has been required by the chairper- son of the Appeal Board to do so or, having been sworn or having made affirmation, fails to answer filly and satisfactorily any question latilly put to him or her, or fails to produce any book, document or object in his or her possession or custody or under his or her control, which he or she has been summoned to produce, shall be guilty of an offence. (23) Any person who after having been sworn or having made affirmation, gives false evidence before the Appeal Board on any matter, knowing such evidence to be false or not knowing or believing it to be true, shall be guilty of an offence. (Issue No 33- Supplementa~) 157 STATUTES OF THE REPUBLIC OF SOUTH AFNCA–MEDICWE, DENTISTRY AND PHAWACY Medical Schemes Act, No. 131 of 1998 s. 51 s. 51 CHAPTER 11 JUDICIAL MAmERS

Part

CHAPTER 9

42
Registrar may require additional particulars
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AI-assisted research summary: The Registrar may require additional particulars.

42. Registrar may require additional particulars
43
Enquiries by Registrar
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AI-assisted research summary: Section 43 concerns enquiries by the Registrar.

43. Enquiries by Registrar
44
Inspections and reports
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AI-assisted research summary: Section 44 is titled “Inspections and reports.”

44. Inspections and reports
45
Persons not registered to furnish information
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AI-assisted research summary: Section 45 concerns persons not registered to furnish information.

45. Persons not registered to furnish information
46
Removal of member of board of trustees
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AI-assisted research summary: Section title: removal of a member of the board of trustees.

46. Removal of member of board of trustees CHAPTER 10 COMPLAINTS AND APPEALS

Part

CHAPTER 10

48
Appeal to Council
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AI-assisted research summary: This section is titled “Appeal to Council.”

48. Appeal to Council
49
Appeal against decision of Registrar
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AI-assisted research summary: This section is about appeals against a Registrar’s decision.

49. Appeal against decision of Registrar
50
Appeal Board
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AI-assisted research summary: Section 50 is titled “Appeal Board.”

50. Appeal Board CHAPTER 11 JUDICIAL MATTERS 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. Application to High Court Judicial management Winding-up Compromise Information as to compromise Appointment of curator CHAPTER 12 GENERAL General provisions on governance Administration by intermediary Charges by suppliers of service Preservation of secrecy Undesirable business practices Limitation of liabili~ Amalgamation and transfer Voluntary or automatic dissolution Broker services and commission Offences and penalties Regulations Repeal of laws and transitional arrangements

Part

CHAPTER 12

69
Short title and commencement
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AI-assisted research summary: This section is titled “Short title and commencement.”

69. Short title and commencement (Issue No 33- Supplementa~) 105 ,,- STATUTES OF THE REPUBLIC OF SOUTH AFWCA–MEDICWE, DENTISTRY AND P~ACY Medical Schemes Act, No. 131 of 1998 s. 1 s. 1 Laws repealed by section 68 (1) Transitional provisions SCHEDULE 1 SCHEDULE 2 CHAPTER 1 DEFmITIONS

Part

CHAPTER 1

1
Definitions.+ 1) In this Act, unless inconsistent with the context—
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AI-assisted research summary: This section defines key terms used in the Act.

1. Definitions.+ 1) In this Act, unless inconsistent with the context— “actuary” means any fellow of an institute, faculty, society or chapter of actuaries approved by the Minister of Finance; “administrator” means any person who has been accredited by the Council in terms of section 58, and shall, where any obligation has been placed on a medical scheme in terms of this Act, also mean a medical scheme; “Appeal Board” means the Appeal Board established by section 50 (l); “board of trustees” means the board of trustees charged with the managing of the affairs of a medical scheme, and which has been elected or appointed under its rules; “business of a medical scheme” means the business of undertaking liability in return for a premium or contribution— (a) to make provision for the obtaining of any relevant health service; (b) to grant assistance in defraying expenditure incurred in connection with the rendering of any relevant health service; and (c) where applicable, to render a relevant health service, either by the medical scheme itself, or by any supplier or group of suppliers of a relevant health ser- vice or by any person, in association with or in terms of an agreement with a medical scheme; “Council” means the Council for Medical Schemes established by section 3; “complaint” means a complaint of a. complainant relating to the administration of a medical scheme, the investment of its tids or the interpretation and application of its rules, and alleging— (a) that a decision of the medical scheme or any person purportedly taken in terms of the rules was in excess of the powers of that medical scheme or person, or an improper exercise of its powers; (b) that the complainant has sustained or may sustain prejudice in consequence of the maladministration of the medical scheme by the medical scheme or any per- son, whether by act or omission; (c) that a dispute of fact or law has arisen in relation to the medical scheme between the medical scheme or any person and the complainant; or (m that an employer who participates in the medical scheme has not filfilled its duties in terms of the rules of the medical scheme, but shall not include a complaint which does not relate to a specific complainant; (Issue No 33- Supp/ernenta~) 107 STATUTES OF THE WPUBLIC OF SOUTH AFWCA–MEDICmE, DENTISTRY AND PH~CY Medical Schemes Act, No. 131 of 1998 s. 1 s. 1 “curator” means a curator appointed under section 56; “dependant” means— (a) the spouse or partner, dependant children or other members of the member’s immediate family in respect of whom the member is liable for family care and support; or (b) any other person who, under the rules of a medical scheme, is recognised as a dependant of such a member and is eligible for benefits under the rules of the medical scheme; “financial year” means each period of 12 months endingon31 December; “Master” means the Master of the High Court; “medical scheme” means any medical scheme registered under section 24 (l); ‘,- “member” means a person who has been enrolled or admitted as a member of a medical scheme, or who, in terms of the rules of a medical scheme, is a member of such medical scheme; “Minister” means the Minister of Health; “officer” means any member of a board of trustees, any manager, principal officer, trea- surer, clerk or other employee of the medical scheme, but does not include the auditor of the medical scheme; “prescribed” means prescribed by regulation; “principal officern means the principal officer appointed in terms of section 57 (4) (a); “Registrar” means the Registrar of Medical Schemes appointed in terms of section 18; ‘relevant health service~ means any health care treatment of any person by a person registered in terms of any law, which treatment has as its object— (a) (b) (c) (4 (e) w the physical or mental examination of that person; the diagnosis, treatment or prevention of any physical or mental defect, ilhess or deficiency; the givtig of advice in relation to any such defect, ilhess or deficiency; the giving of advice in relation to, or treatment of, any condition arising out of a pregnancy, including the termination thereofi the prescribing or supplying of any medicine, appliance or apparatus in relation to any such defect, ilhess or deficiency or a pregnancy, including the termina- tion thereoc or nursing or midwife~, and includes an ambulance service, and the supply of accommodation in an institution es- tablished or registered in terms of any law as a hospital, maternity home, nursing home or similar institution where nursing is practised, or any other institution where surgical or other medical activities are performed, and such accommodation is necessitated by any physical or mental defect, ilkess or deficiency or by a pregnancy; (Issue No 33- Supplemenla~) 109 STATUTES OF THE REPUBLIC OF SOUTH AFWCA–MEDICINE, DENTISTRY AND PHAWACY Medical Schemes Act, No. 131 of 1998 SS.1–3 SS.1–3 “restricted membership scheme” means a medical scheme, the rules of which restrict the eligibility for membership by reference t~ (a) emplo~ent or former employment or both employment or former employment in a profession, trade, industry or calling; (b) employment or former employment or both employment or former employment by a particular employer, or by an employer included in a particular class of employers; (c) membership or former membership or both membership or former membership of a particular profession, professional association or union; or (~ any other prescribed matter; “rules” means the rules of a medical scheme and include— (a) the provisions of the law, charter, deed of settlement, memorandum of associa- tion or other document by which the medical scheme is constituted; (b) the articles of association or other rules for the conduct of the business of the medical scheme; and (c) the provisions relating to the benefits which maybe granted by and the contri- butions which may become payable to the medical scheme; “this Act” includes the regulations. (2) For the purposes of this Act any reference in this Act to a medical scheme shall be construed as a reference to that medical scheme or to the board of trustees of that medical scheme, as the case may be. C~PTER 2 A PPLICATION OF ACT
2
Application of Act.+ 1) If any conflict, relating to the matters dealt within this Act,
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AI-assisted research summary: This section says the Act takes priority over conflicting laws on matters it covers, except the Constitution and any Act that expressly amends this Act.

2. Application of Act.+ 1) If any conflict, relating to the matters dealt within this Act, arises bemeen this Act and the provisions of any other law save the Constitution or any Act expressly amending this Act, the provisions of this Act shall prevail. (2) This Act shall also apply to a medical scheme established by any organ of the State including those medical schemes established under section 28 (g) of the Labour Relations Act, 1995 (Act No. 66 of 1995). CWTER 3 COUNCIL FOR MEDICAL SCHEMES Part 1: Council

Part

Part 2: Registrar, Depu~ Registrar and stafof Council

18
Appointment of Registrar and Depu@ Registrar of Medical Schemes.—( 1) me
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AI-assisted research summary: The Minister appoints a Registrar and Deputy Registrars after consulting the Council; the Registrar must manage and supervise the office, and Deputy Registrars assist and may exercise powers with approval.

18. Appointment of Registrar and Depu@ Registrar of Medical Schemes.—( 1) me Minister shall, after consultation with the Council, appoint a Registrar and one or more Deputy Registrars of Medical Schemes. (2) me Registrar shall be the executive o~cer of the Council and shall manage the affairs of the Council. (3) me Registrar shall act in accordance with the provisions of this Act and the policy and directions of the Council. (4) fie Registrar may assign to any staff member such of his or her functions or duties as he or she may from time to time determine. (5) me Registrar shafl supervise the staff appointed under section 8 (a) or (c)or placed at his or her disposal in terms of section 19 (l). (6) A Deputy Registrar shall assist the Registrar in the performance of his or her func- tions and the carrying out of his or her duties and may, subject to the approval of the Registrar, exercise any power conferred upon the Registrar by the Council or by this Act.
19
Staff of Council.+1) me Council may, in addition to the staff appointed or a per-
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AI-assisted research summary: The Council may ask the Director-General of Health to provide public service staff to help the Registrar. Council staff (except certain officers and employees) must be paid remuneration and allowances set by the Council with ministerial consultation and Finance Minister concurrence. Council staff must also join the Government Employees' Pension Fund.

19. Staff of Council.+1) me Council may, in addition to the staff appointed or a per- son under contract under section 8 (a) or (c) respectively, request the Director-General of Health to place at the disposal of the Registrar, officers and employees in the public service in terms of section 15 (3) of the Public Service Act, 1994 (Proclamation No. 103 of 1994) to assist the Registrar in the performance of his or her fictions and duties. (2) me staff of the Council, excluding the o~cers and employees referred to in sub- section (1), shall be paid such remuneration and allowances as the Council may, after consul- tation with the Minister and with the concurrence of the Minister of Finance, determine from time to time. (Issue No 33- Supplementa~) 121 STATUTES OF THE WPUBLIC OF SOUTH AFRICA–MEDICINE , DENTISTRY AND PHARMACY Medical Schemes Act, No. 131 of 1998 SS. 19–24 SS. 19 – 24 (3) Staff of the Council shall become members of the Government Employees’ Pen- sion Fund mentioned in section 2 of the Government Employees Pension Law, 1996 (Proclamation No. 21 of 1996). CHAPTER 4 MEDICAL SCHEMES

Part

CHAPTER 11

51
Application to High Court.+1) The Registrar may, with the concurrence of the
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AI-assisted research summary: This section lets the Registrar, a medical scheme, members, or creditors apply to the High Court for certain orders about a medical scheme, and sets conditions for some applications.

51. Application to High Court.+1) The Registrar may, with the concurrence of the Council, in regard to any medical scheme, apply to the High Court for an order contemplated in paragraph (b), (c), (~ or (e) of subsection (5), if the Registrar is of the opinion that it is in the interest of members or because material irregularities have come to his or her notice. (2) A medical scheme may, in regard to itself, apply to the High Court for an order contemplated in paragraph (b), (~ or (e) of subsection (5), if the medical scheme is of the opinion that it is desirable, because the medical scheme is not in a sound financial condition or for any other reason that such an order be made iu regard to the medical scheme: Provided that a medical scheme shall not make such an application except by leave of the High Court and the court of appeal shall not grant such leave unless the medical scheme has given security to an amount specified in the Rules of the High Court for the payment of such costs. (3) Any member or one or more creditors of a medical scheme may make an applica- tion to the High Court for an order in terms of paragraph (b), (~ or (e) of subsection (5), and the proviso to subsection (2) shall apply in regard to such an application. (4) If an application to the High Court in terms of subsection (3) is made by a person other than the Registrar— (a) it shall not be heard unless a copy of the notice of motion and of all accompany- ing affidavits and other documents filed in support of the application are also lodged with the Registrar at least 15 days, or such shorter period as the High Court may allow on good cause shown, before the application is set down for hearing; and (b) the Registrar may, if he or she is of the opinion that the application is contrary to the interest of the members of the medical scheme concerned, make applica- tion to join the application as a party and file affidavits and other documents in opposition to the application. (5) Upon any application in terms of the preceding subsections, the High Court may— (a) refuse the application; (b) order that an investigation be made and may issue such directions regarding such investigation as the High Court may deem desirable; (c) order that the rules of the medical scheme relating to the appointment, powers, remuneration and removal from office of any officer, or relating to such other matter as the High Court may regard appropriate, be altered in a manner to be specified in such order; (~ order that the medical scheme be placed under judicial management in terms of section 52; or (e) order that the whole or any part of the business of the medical scheme be wound-up in terms of section 53. (6) The High Court shall, in exercising its discretion under subsection (5), consider the equitable interests of the members and of any other person who has rendered or who intends to render financial assistanc& to the medical scheme, and, subject to such considerations as aforesaid, shall make such order as it deems most advantageous to the members. (7) men a High Court has made an order under paragraph (b) of subsection (5) in regard to a medical scheme, it may at any time thereafter make an order under paragraph (c), (~ or (e) of that subsection in regard to that medical scheme, and when a High Court has made an order under paragraph (~ of subsection (5) in regard to the medical scheme, it may at any time (Issue No 33- Supp/emenfa~) 159 - STATUTES OF THE REPUBLIC OF SOUTH AFNCA–MEDICNE, DENTISmY WD P~cY Medical Schemes Act, No. 131 of 1998 SS. 51-52 SS. 51 – 52 L thereafter make an order under paragraph (e) of that subsection in regard to that medical scheme. (8) Notwithstanding anything to the contrary contained in the rules of a medical scheme, an order of the High Court made under paragraph (c) of subsection (5) shall take effect as from the date specified for that purpose in the order, or if no date has been so speci- fied, as from the date of the order, and thereupon the said rules shall be deemed to have been amended in the manner specified by the High Court. (9) Unless the High Court otherwise orders, the costs of the Registrar in or in connec- tion with an application in terms of this section, shall be paid by the medical scheme and shall be a fwst charge upon the assets of such medical scheme.
52
Judicial management.+1 ) Chapter ~ of the Companies Act, 1973 (Act No. 61
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AI-assisted research summary: This section applies Chapter N of the Companies Act to medical-scheme judicial management, and gives the Registrar and the High Court specific roles and controls.

52. Judicial management.+1 ) Chapter ~ of the Companies Act, 1973 (Act No. 61 of 1973), shall, subject to the provisions of this section and with the necessary changes, apply in relation to the judicial management of a medical scheme, and in such application the Regis- trar shall be deemed to be a person authorised by section 346 of the Companies Act, 1973, to make an application to the High Court for the winding-up of the medical scheme. (2) me Registrar may, with the concurrence of the Council, make an application under section 427 (2) of the Companies Act, 1973, for a judicial management order in respect of a medical scheme if he or she is satisfied that it is in the interests of the members of that medical scheme to do so. (3) In the application of Chapter N of the Companies Act, 1973, as provided for by subsection (1> (a) (b) (c) (4 (e) w (g) a reference which rehtes to the inability of a medical scheme to pay its debts or to meet its obligations shall be construed as relating also to its inability to com- ply with the requirements prescribed by section 35 (1) of this Act in addition to any question which relates to the nature of a medical scheme as a successful concern, there shall be considered also the question whether any course of action is in the interest of its members; a reference to the members of a company in sections 432 (2) and 433 (~ shall be construed as a reference also to the members of a medical scheme; a reference in sections 432 (2) (e) and 433 (~ to the Registrar of Companies shall be construed as a reference also to the Registraq a reference in sections 428 (3), 432 (4) and 433 ~) to the Master shall be con- strued as a reference also to the Registrar; a reference in section 433 ~) to a contravention of any provision of that Act shall be construed as a reference also to a contravention of any provision of this Act; and a reference to a director shall be construed as referring also to a member of the board of trustees. (4) If an application to the High Court for the judicial management of a medical scheme is made by a person other than the Registrar— (a) it shall not be heard unless copies of the notice of motion and of all accompany- ing affidavits and other docments filed in support of the application are lodged with the Registrar at least 15 days, or such shorter period as the High Court may allow on good cause shown, before the application is set down for hearing; and (b) the Registrar may, if he or she is satisfied that the application is contrary to the interests of the members of the medical scheme concerned, make application to the High Court to join the application as a party and file affidavits and other documents in opposition to the application. (Issue No 33- SuppIementay) 161 STAWTES OF ~E REP~LIC OF So~ A~CA–WDICmE, DWIS~Y AND P~~ Medical Schema Act, No. 131 of 1998 SS. 52 – 53 SS. 52-53 (5) As from the date on which a provisional or fml judicial management order is granted in respect of a medical scheme— (a) any reference in this Act to a medical scheme sha~, urdess clearly inappropriate, be construed as a reference to the provisional or fml judicial manager, as the case may be; and (b) the provisional or fwl judicial manager of a medical scheme sha~ not admit members dess he or she has been granted permission to do so by the High Court in the provisional or final judicial management order or any variation thereof.
53
Winding-up.+1) Chapter XV of the Companies Act 1973 (Act No. 61 of 1973),
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AI-assisted research summary: This section adapts Companies Act winding-up rules to medical schemes and gives the Registrar special powers and procedures for those cases.

53. Winding-up.+1) Chapter XV of the Companies Act 1973 (Act No. 61 of 1973), shall, subject to the provisions of this section and with the necessary changes, apply in relation to the winding-up of a medical scheme and in such application the Registrar shall be deemed to be a person authorised by section 346 of the Companies Ac6 1973, to ~e an application to the High Court for the winding-up of the medical scheme. (2) me Registrar may, with the concurrence of the Council and with the approval of the High Court, retie an application under section 346 of the Companies Act 1973, for the winding-up of a medical scheme if he or she is satisfied, that it is in the interest of the members of that medical scheme to do so. (3) In the application of Chapter XN of the Companies Ack 1973, as provided for by subsection (1> (a) (b) (c) (4 (e) m ~) (h) a reference which relates to the inability of a medical scheme to pay its debts shall be construed as relating also to its inabdity to comply with the require- ments prescribed by section 35 (1) of this Acfi in addition to any question whether it is just and equitable that a medical scheme should be wound up, there shall be considered also the question whether it is in the interests of the members of that medical scheme that it should be wound Up; notwithstanding any other provision of that Chapter, there shall be considered whether a person is acting in contravention of section 20 of this Act; a reference in sections 392, 394 (5) and 400 to the Master shall be construed as a reference also to the Registr~, a reference to the Registrar of Companies in sections 375 (5) (a) and 419(1) shall be construed as a reference also to the Registrm, a reference in section 400 to a contravention of any provision of that Act shall be cons~ed as a reference also to a contravention of any provision of this Act; section 346 (3) of the Companies Ac4 1973, sha~ not apply where the Registrar m~es the application to the High COW, and a reference to a company shall be construed as referring also to a medical scheme, and a reference to a director shall be construed as referring also to a member of a board of trustees. (4) If an apphcation to the High Court for or in respect of the winding-up of a medical scheme is made by any person other than the Registrar— (a) it shall not be heard tiess copies of the notice of motion and of all accompany- ing affidavits and other documents filed in support of the application are lodged with the Registrar at least 15 days, or such shorter period as the High Court may allow on good cause show before the application is set down for hearing; and (Issue No 33- Supplementu~) 163 STATUTES OF THE REPUBLIC OF Soum AFMCA–MEDICm, DENTISTRY AND PHAWACY Medical Schemes Act, No. 131 of 1998 Ss. 53-55 Ss. 53-55 (b) the Registrar may, if satisfied that the application is contrary to the interests of the members of the medical scheme concerned, make application to the High Court to join the application as a party and file affidavits and other documents in opposition to the application.
54
Compromise.+ 1) mere any compromise or arrangement is proposed between a
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AI-assisted research summary: The High Court may convene and sanction a compromise or arrangement for a medical scheme, but it does not change a surety’s liability.

54. Compromise.+ 1) mere any compromise or arrangement is proposed between a medical scheme and its creditors or any class of them, or between a medical scheme and its members or any group of them, the High Court may, on the application of the medical scheme or any creditor or member thereof or, in the case of a medical scheme being wound up, of the liquidator, or if the medical scheme is subject to a judicial management order, of the judicial manager, or if the medical scheme is subject to a curatorship order, of the curator, order a meeting of the creditors or class of creditors, or of the members of the medical scheme or a group of members, as the case may be, to be summoned in such manner as the High Court may direct. (2) If the compromise or arrangement is agreed to by— (a) a majority in number representing 75 per cent in value of the creditors or class of creditors; or (b) a majority representing 75 per cent of the votes exercisable by the members or group of members, as the case may be, present and voting either in person or by proxy at the meeting, such compromise or arrangement shall, if sanctioned by the High Court, be binding on all the creditors or the class of creditors, or on the members or group of members, as the case may be, and also on the medical scheme, liquidator, judicial manager or curator, as the case may be. (3) No such compromise or arrangement shall affect the Iiabdity of any person who is a surety for the medical scheme. (4) If the compromise or arrangement provides for the discharge of a winding-up order, a judicial management order or curatorship order or for the dissolution of the medical scheme without winding-up, the liquidator or judicial manager or curator of the medical scheme, as the case may be, shall lodge with the Master and the Registrar a report as to whether or not any individual, organisation, person or persons or oficer of the medical scheme is or appears to be personally liable for damages or compensation to the medical scheme or for any debts or liabilities of tie medical scheme under any provision of this Act, and the Master and the Registrar shall report thereon to the High Court. (5) me High Court, in deterrnining whether the compromise or arrangement should be sanctioned or not, shall have regard to the number of members present or represented at the meeting referred to in subsection (2) and voting in favour of the compromise or arrangement, and to the report of the Master and the Registrar referred to in subsection (4).
55
Information as to compromise.—( 1) Were a meeting of creditors or members is
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AI-assisted research summary: If a creditors’ or members’ meeting is called to approve a compromise or arrangement, the medical scheme must send or include a statement explaining it and giving all relevant material information; copies must be supplied free on application where advertised notice says so.

55. Information as to compromise.—( 1) Were a meeting of creditors or members is summoned under section 54 for the purpose of agreeing to a compromise or arrangement, there shall— (a) with every notice summoning the meeting which is sent to a creditor or mem- ber, be sent also a statement explaining the effect of the compromise or arrangement and stating all relevant information material to the proposed trans- action; and (b) in every notice summoning the meeting which is given by advertisement, be included either such a statement as referred to in paragraph (a) or a notification of the place at which and the manner in which creditors or members entitled to attend the meeting may obtain copies of such a statement. (Issue No 33- Supplementa~) 165 STAMES OF THE WPUBLIC OF SOUTH AFRICA–MEDICWE, DENTISTRY AND PHWCY Medical Schemes Act, No. 131 of 1998 Ss. 55-57 Ss. 55-57 (2) Were a notice given by advertisement includes a notification that copies of the ~titement ~eferred to in subsection (1) (a) may be obtahed by creditors or members entitled to attend the meeting, every such creditor or member shall, on -g application in the manner indicated by the notice, be ftished by the medical scheme free of charge with a copy of such statement. (3) mere a medical scheme is in default of complying with any requirement of this section, such medical scheme and every officer who is a party to the default, shall be guilty of an offence, and for the pu~ose of this subsection any liquidator, judicial manager or curator of the medical scheme shall be deemed to be an officer. (4) A person shall not be liable under subsection (3) if he or she shows that the default was due to the refisal of any other person to supply the necessary particulars as to his or her interests and that fact has been stated in the statement referred to in subsection ( 1) (a).
56
Appointment of curator.<1) me Registrar may, notwithstanding the provisions
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AI-assisted research summary: The Registrar may ask the High Court to appoint a curator for a medical scheme, but only with the Council’s concurrence and when certain concerns exist.

56. Appointment of curator.<1) me Registrar may, notwithstanding the provisions of sections 52 and 53, if he or she is of the opinion that it is in the interest of members or that it is desirable to do so, because material irregularities have come to his or her notice, or because a medical scheme is not in a sound financial condition or as a result of an inspection of the affairs of a medical scheme, apply, with the concurrence of the Council, to the High Court, for the appointment of a curator to tie control of and to manage the business of that medical scheme. (2) me provisions of the Financial Institutions (Investment of Funds) Act, 1984 (Act No. 39 of 1984), insofar as those provisions relate to the appointment of a curator in terms of the said Act, and insofar as they are not inconsistent with the provisions of this Act, shall apply with the necessary changes to the appointment of a curator of a medical scheme in terms of this section. (3) In the application of the Financial Institutions (Investment of Funds) Act, 1984 as provided for by subsection (1> (a) a reference to a company and the registrar in section 1 of the Financial Institu- tions (hvestment of Funds) Act, 1984, shall be construed as a reference also to a board of trustees and the Registrar, respectively; (b) a reference in that Act to a director, official, employee or agent shall be con- strued as a reference also to a member of the board of trustees or the principal officer, as the case may be; and (c) a reference in that Act to a financial institution shall be construed as a reference also to a medical scheme. CHAP~R 12 GENERAL
57
General provisions on governance.<1) Every medical scheme shall have a board
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AI-assisted research summary: Medical schemes must have a board of trustees, with at least half elected from members, and the board has specific governance duties and conflict rules.

57. General provisions on governance.<1) Every medical scheme shall have a board of trustees consisting of persons who are fit and proper to manage the business contemplated by the medical scheme in accordance with the applicable laws and the rules of such medical scheme. (2) At least 50 per cent of the members of the board of trustees shall be elected from amongst members. (3) A person who is a director or an employee of an administrator of a medical scheme, shall not be a member of the board of trustees of such a medical scheme. (Issue No 33- Supplemenfa~) 167 STATUTES OF THE WPUBLIC OF SOUTH AFRICA–MEDICm, DENTISTRY AND PHAWACY Medical Schemes Act, No. 131 of 1998 SS. 57-58 SS. 57 – 58 (4) me duties of the board of trustees shall be t~ (a) (b) (c) (4 (e) m (g) (h) (i) appoint a principal officer who is a fit and proper person to hold such office and shall within 30 days of such appointment give notice thereof in writing to the Registrav ensure that proper registers, books and records of all operations of the medical scheme are kept, and that proper minutes are kept of all resolutions passed by the board of trustees; ensure that proper control systems are employed by or on behalf of the medical scheme; ensure that adequate and appropriate information is communicated to the members regarding their rights, benefits, contributions and duties in terms of the rules of the medical scheme; take all reasonable steps to ensure that contributions are paid timeously to the medical scheme in accordance with this Act and its rules; take out and maintain professional indemnity insurance and fidelity guarantee insurance from and up to such amount as the medical scheme’s auditor, with the concurrence of the Registrar, may determine; obtain expert advice on legal, accounting and business matters as required, or on any other matter of which the members of the board of trustees may lack suffi- cient expertise; ensure that the rules, operation and administration of the medical scheme comply with the provisions of this Act and all other applicable laws; and take all reasonable steps to protect the confidentiali~ of medical records con- cerning any member’s state of health. (5) Any notice required or permitted to be given to a medical scheme in terms of this Act shall, if given to the principal officer, be deemed to have been duly given to the medical scheme. (6) me board of trustees shall— (a) take all reasonable steps to ensure that the interests of members in terms of the rules of the medical scheme and the provisions of this Act are protected at all times; (b) act with due care, diligence, skill and good faith; (c) take all reasonable steps to avoid conflicts of interest; and (~ act with impartiality in respect of all members.
58
Administration by intermediary.+ 1) No person shall administer a medical
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AI-assisted research summary: A person may not act as an intermediary for a medical scheme unless the Council has granted accreditation.

58. Administration by intermediary.+ 1) No person shall administer a medical scheme as an intermediary unless the Council has, in a particular case or in general, granted accreditation to such a person. (2) An application to administer a medical scheme shall be made to the Council in the manner and be accompanied by such information, as may be prescribed, and any other infor- mation as the Council may require. (3) me Council may— (a) approve the application; (b) limit such approval to the performance of specified functions; and (c) review the approval from time to time. (4) Application for approval in terms of subsection (2) shall be accompanied by the fees prescribed. (Issue No 33- Supp/ementa~) 169 STATUTES OF THE WPUBLIC OF SOUTH AFRICA–MEDICINE , DENTISTRY AND PHAWACY Medical Schemes Act, No. 131 of 1998 SS. 59-61 SS. 59 – 61
59
Charges by suppliers of service.+1) A supplier of a service who has rendered
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AI-assisted research summary: Suppliers must give the member an account or statement with prescribed particulars, medical schemes must pay benefits owing within 30 days after receiving the claim, and a medical scheme may deduct certain amounts from payable benefits.

59. Charges by suppliers of service.+1) A supplier of a service who has rendered any service to a member or to a dependant of such a member in terms of which an account has been rendered, shall, notwithstanding the provisions of any other law, Wish to the member concerned an account or statement reflecting such particulars as maybe prescribed. (2) A medical scheme shall, in the case where an account has been rendered, subject to the provisions of this Act and the rules of the medical scheme concerned, pay to a member or a supplier of service, any benefit owing to that member or supplier of service within 30 days after the day on which the claim in respect of such benefit was received by the medical scheme. (3) Notwithstanding anything to the contrary contained in any other law a medical scheme may, in the case of— (a) any amount which has been paid bonefide in accordance with the provisions of this Act to which a member or a supplier of health service is not entitled to; or (b) any loss which has been sustained by the medical scheme through theft, fraud, negligence or any misconduct which comes to the notice of the medical scheme, deduct such amount from any benefit payable to such a member or supplier of health service.
60
Preservation of secrecy.+ 1 ) A member of the Council or of its staff shall not
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AI-assisted research summary: Council members, staff, and any person must not disclose certain confidential information, unless a listed duty, legal requirement, or court process allows it.

60. Preservation of secrecy.+ 1 ) A member of the Council or of its staff shall not disclose any information relating to the affairs of the Council where the Council meets in committee or in those ~stances where the chairperson so determines, except for the purposes of the performance of his of her duties or the exercise of his or her powers in terms of this Act or any other law or when required to do so under any law before a court of law. (2) No person shall, except in the perforrnanc$ of his or her fuctions or duties under this Act or when called upon to do so as a witness before a court of law, disclose any informat- ion relating to the affairs of any medical scheme and tiished to or obtained by him or her in connection with any enquiry or investigation under this Act.
61
Undesirable business practices.+1 ) Notwithstanding the provisions of any other
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AI-assisted research summary: The Registrar can declare a business practice undesirable, but must first give notice and let interested persons comment; the Registrar can also suspend or require rectification of the practice, and schemes or persons must stop the practice after notice or directive.

61. Undesirable business practices.+1 ) Notwithstanding the provisions of any other law, the Registrar may, with the concurrence of the Council and the Minister, by notice in the Gazette, declare a particular business practice as undesirable for— (a) all or a particular category of medical schemes; or (b) all or a particular category of persons who render contractual, administrative or intermediary services. (2) me Registrar shall not publish the declaration referred to in subsection (1) unless he or she has, at least 60 days before that declaration is given, by notice in the Gazette pub- lished his or her intention to make the declaration and invited interested persons thereby to make written representations regarding the proposed declaration so as to reach him or her within 21 days after the date of publication of that notice. (3) me Registrar may, if he or she is satisfied that a medical scheme or any other per- son is carrying on a business practice which, in his or her opinion, may become the subject of a declaration under subsection (l), in writing, direct that medical scheme or person to suspend that particular business practice for such a period, not exceeding three months, as he or she deems necessary to enable the matter to be dealt with in terms of subsection (l). (4) No medical scheme or other person shall, on or after the date of a notice referred to in subsection (1), or of a directive referred to in subsection (3), carry on the business practice referred to in the directive referred to in subsection (3). (5) me Registrar may, in writing, direct a medical scheme or other person who has, on or after the date of a notice referred to in subsection (1), or a directive referred to in subsection (3), carried on the business practice concerned, to rectify, to his or her satisfaction, anything (Issue No 33- Supp/ementa~) 171 STAm OF ~E REP~LIC OF Som A~CA–MEDICNE, DENTISmY AND PHAWACY Medical Schmes Act, No. 131 of 1998 SS. 61 – 63 as. 61 – 63 which he or she is satisfied was caused by or arose out of that carrying on of the business practice concerned. (6) A medical scheme or other person who is under subsection (5) directed to rectify anything, sha~ do so within 60 days after it has so been directed.
62
Limitation of liability.-~e Minister, the Council, a member of the Council or of
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AI-assisted research summary: Listed officials and staff are not liable for bona fide discretionary actions done while performing functions under this Act.

62. Limitation of liability.-~e Minister, the Council, a member of the Council or of the Appeal Boar~ the Registrar, Deputy Registrar or other staff member of the Council shall not be liable in re~t of any bona @de exercise of a discretion in the performance of any tiction under this Act.
63
Amalgamation and transfer.+1) No transaction involving the amalgamation of
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AI-assisted research summary: Medical scheme amalgamations and transfers are invalid unless they follow this section’s procedures.

63. Amalgamation and transfer.+1) No transaction involving the amalgamation of the business of a medical scheme with any other medical scheme or the transfer of any busi- ness from a medical scheme to any other medical scheme or the transfer of any business from any other person to a medicd scheme, shall be of any force, unless such amalgamation or transfer is carried out in accordance with the provisions of this section. (2) me medical scheme contemplated in subsection (1) shall deposit with the Registrar a copy of the exposition of the proposed transaction including a copy of every actuarial or other statement tien into account for the purpose of the proposed transaction, and shall tiish the Registrar with particulars of the voting at any meeting of its members at which the proposed transaction was considered and with such additioml information as tie Registrar may require. (3) me Registrar may require a medical scheme to comply with any of the following provisions regarding the proposed transaction: (a) A report on the proposed transaction to be drawn up by an independent valuator or other competent person nominated by the Registrar at the expense of the medical schemes concerned. (b) A copy of the exposition of the proposed transaction and of the report, if any, referred to in paragraph (a) to be forwarded by the parties concerned to every member and creditor of those medical schemes. (c) me pubhcation of the proposed transaction of the parties concerned in a form approved by the Registrar in the Gaette and in such newspaper or newspapers as the Registrar may direct. (4) Copies of the exposition of tie proposed transaction and of the report, referred to in subsection (3) (a) shall, for such period but not less than 21 days or within such firther period as the Registrar may, on request allow, be made available for the inspection of any member or creditor of any party to the proposed transaction or by any other person or body having an interest therek (a) at the registered office of any medical scheme concerned; (b) at the registered office or other principal place of business in the Republic of any other party; and (c) at the ofice of the Registrar. (5) A person who has an interest in the proposed transaction may, in writing, submit to the Registrar within 21 days afier the period specified in terms of subsection (4), such repre- sentations concerning the transaction as are relevant to his, her or its interests. (6) me Registrar shall, if he or she is satisfied that the requirements of subsection (4) have been complied with, consider the exposition of the proposed transaction and thereafter he or she may— (a) confm the exposition; or (Issue No 33- Supplementa~) 173 w .- STATUTES OF THE REP~LIC OF SOUTH AFMCA–MEDICmE, DENTISTRY AND P~ACY Medical Schemes Act, No. 131 of 1998 S. 63 S. 63 (b) suggest that the parties to the proposed transaction modi~ the exposition in certain respects, and if they so modi@ the exposition he or she may confm the exposition as modified; or (c) decline to confm the exposition. (7) me Registrar shall not confii the proposed exposition tiess he or she is satisfied that the transaction conceme& (a) wotid not be detrimental to the interests of the majority of the members of the medical schemes concerned; and (b) would not render any of the medical schemes concerned which will continue to exist if the proposed exposition is completed, unable to meet the requirements of this Act or to remain in a sound fiancial condition, or, in the case of a medi- cal scheme which is not in a sound fwncial condition, to attain such a condi- tion within a period of time deemed by the Registrar to be satisfactory. (8) If the Registrar has dectied to cotim the exposition, the parties to the proposed transaction may, afier notice of not less than 14 days to the Registrar, apply to the Council for confmtion of the exposition. (9) me Registrar shall be entided to be heard personally or through a representative at any consideration by the Council of such application. (10) me Council may confm the exposition as submitted to it or with such modifica- tions as the Council may deem fit or decline to cotim the exposition. (11) Any exposition confiied by the Registrar or the Council in accordance with this section shall be binding on all parties conceme~ and shall have effect notwithstanding any confecting provision contained in the rules of any medical scheme concerned, in the memo- randum or other document under which any other party to the transaction is constituted or in the articles of association or other rules of such party. (12) Any person who is aggrieved by a decision of the Registrar in terms of subsection (6) or a decision of the Councfl in terms of subsection (10), may within 30 days after the date on which such decision was given, appeal against such decision to the Appeal Board or the High Court as the case may be, and the Appeal Board or the High Court may m~e such order as it may deem necessary. (13) As soon as the exposition of the proposed transaction has been confined by the Registmr or the Council, as the case may be, the person controlling the amalgamated business or the person to whom any business has been transferred in terms of the transaction, as the case may be, shall within 14 days afier such confmtion deposit with the Registrar a declaration, duly signed in accordance with the provisions of section 39, on behalf of each of the parties to the transactio~ and ako stating that, to the best of their befief, every payment made or to be made or other valuable consideration given or to be given to any person whatsoever on account of the amalgamation or transfer is fully set forth in the exposition of the proposed transaction and that all the conditions of the transaction have been complied with. (14) Upon the confiiation of the exposition of a proposed transaction in accordance with the provisions of this section, the relevant assets and liabilities of the parties to the arual- garnation shall vest in and become binding upon the amalgamated body or, as the case may be, the relevant assets and liabilities of the party effecting the transfer shall vest in and become binding upon the party to which transfer is effected. (15) me oficer in charge of a deeds registry in which is registered any deed or other document rehting to any asset which is transferred in accordance with the provisions of subsection (14), shall, upon the production to him or her by the person concerned of such deed or other document and of a certificate by the Registrar of the confirmation of the transaction of (Issue No 33- Suppfementa~) 175 - .- STATUTES OF THE WPUBLIC OF SOUTH AFRICA–MEDICWE, DENTISTRY AND PHAWCY Medical Schemes Act, No. 131 of 1998 SS. 63 – 64 SS. 63-64 amalgamation or of transfer, as the case may be, make the endorsements upon such deed or document and the alterations in his or her registers necessitated by the amalgamation or trans- fer. (16) A transaction in terms of this section shall not deprive any creditor of a party thereto, other than in his or her capacity as a member or a shareholder of such party of any right or remedy which he or she had immediately prior to the date of the transaction against any party to the transaction or against any member or shareholder or officer of such party. (17) No transfer duties, registration fees or charges shall be payable in respect of a transaction contemplated in this section in the execution of a transaction entered into at the insistence of the Registrar, upon written confirmation by the Registrar that the Minister of Finance, on the recommendation of such Registrar and after consultation with the Commiss- ioner of the South African Revenue Service, has consented to waive such duties, fees or charges.
64
Voluntary or automatic dissolution.+1) In the event of the rules of a medical
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AI-assisted research summary: This section sets out how a medical scheme is liquidated and dissolved, who must do what, and how members and creditors can object.

64. Voluntary or automatic dissolution.+1) In the event of the rules of a medical scheme providing for the dissolution or termination of such medical scheme upon the expiry of a period or upon the occurrence of an event, or upon a resolution by the members that such medical scheme shall be terminated, then upon the expiry of such period, or the occmence of such event, or the passing of such resolution, such medical scheme shall, subject to the provi- sions of this section, be liquidated in the manner provided for by the rules of such medical scheme, and the assets of that medical scheme shall, subject to the provisions of this Act, be distributed in the manner provided for by the rules of the medical scheme. (2) me board of trustees of the medical scheme shall appoint a person or persons as liquidator who shall be approved by the Registrar and the liquidation shall be deemed to commence as from the date of such approval. (3) During such liquidation the provisions of this Act shall continue to apply to such medical scheme as if the liquidator was the person managing the business of the medical scheme. (4) me liquidator shall, as soon as possible, deposit with the Registrar a preliminary account and a preliminary balance sheet signed and certified by him or her as correct, showing the assets and liabilities of the medical scheme at the commencement of the liquidation and the manner in which it is proposed to realise the assets and to discharge the liabilities, including any liabilities and contingent liabilities to or in respect of members. (5) me Registrar may direct the liquidator to furnish a report drawn up by an indepen- dent valuator or other competent person nominated by the Registrar. (6) me prelirnina~ account, preliminary balance sheet and report, if any, referred to in subsections (4) and (5), shall lie open at the office of the Registrar, and at the registered office of such medical scheme, and where the registered office of the medical scheme is in any district other than the district wherein the office of the Registrar is situated, at the office of the magistrate of the district in which the registered office of the medical scheme is situated, for inspection by interested persons for a period of 30 days. (7) me liquidator shall, at the cost of such medical scheme, cause to be published in the Gazette or in a newspaper circulating in the district in which the registered office of such medical scheme is situated, or in both the Gazette and such newspaper, a notice stating the period during which and the places at which the preliminary account, preliminary balance sheet and report, if any, shall lie open for inspection as aforesaid, and such notice shall call upon all interested persons who have any objection to the said preliminary account, prelimi- nary balance sheet and report, if any, to lodge their objections in writing with the Registrar (Issue No 33- Supplementa~) 177 STAMES OF THE WPUBLIC OF SOUTH AFNCA–MEDICNE, DENTISTRY AND PWWCY Medical Schemes Act, No. 131 of 1998 SS. 64 – 65 SS. 64-65 within a period stated in the notice, not being less than 14 days as from the last day on which the aforesaid documents lie open for inspection. (8) If no objections are lodged with the Registrar in terms of subsection (7), he or she shall direct the liquidator to complete the liquidation. (9) me Registrar may, if objections are lodged with him or her in terms of subsection (7), afier considering the said objections, direct the liquidator to amend the preliminary ac- count and preliminary balance sheet, or give such other directions relating to the liquidation as he or she thinks fit: Provided such directions are not inconsistent with the rules of the medical scheme, and any such directions shall be binding upon the liquidator. (10) me liquidator shall, within 14 days of the receipt by him or her of any direction of the Registrar in terms of subsection (9), post a copy thereof to every member and creditor of the medical scheme, and the liquidator or any person aggrieved by any such direction of the Registrar, may apply to the Council or by motion to the High CoUrt within 28 days afier such direction has been communicated to the liquidator, for an order setting aside the Registrar’s decision, and the Council or the High Court may cotim the said decision or make such order as it deems necessary. (11) If the Registrar is satisfied that his or her directions, in so far as they have not been varied or set aside by the Council or the High Court, have been given effect to, he or she shall direct the liquidator to complete the liquidation. (12) me liquidator shall, within 30 days after the completion of the liquidation, lodge with the Registrar a final account and a final balance sheet, signed and certified by him or her as correct, showing the assets and liabilities of the medical scheme at the commencement of the liquidation and the manner in which the assets have been realised and the liabilities, includ- ing any liabilities and contingent liabilities to or in respect of the members, have been dis- charged. (13) me provisions of section 53, in so far as they are applicable to the volunta~ winding up of a medical scheme and are not inconsistent with the provisions of this section, shall apply to the dissolution of a medical scheme in terms of this section. (14) All claims against the medical scheme shall be proved to the satisfaction of the liquidator, subject to a right of appeal to the High Court, and the liquidator may require any claim to be made on affidavit. (15) If the Registrar is satisfied that the said account and balance sheet are correct and that the liquidation has been completed, he or she shall cancel the registration of the medical scheme, and thereupon such medical scheme shall be deemed to be dissolved. (16) Any member of the board of trustees, principal officer or liquidator who fails to take all reasonable steps to ensure compliance with the provisions of this section, shall be guilty of an offence.
65
Broker services and commission.—(1) A medical scheme may compensate any
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AI-assisted research summary: A medical scheme may pay compensation for introducing or admitting a member, but only under its rules; the Minister may set limits and conditions, and payment for related services is barred unless the Council has granted accreditation.

65. Broker services and commission.—(1) A medical scheme may compensate any person, in cash or otherwise, in accordance with its rules, for the introduction or admission of a member to that medical scheme. (2) me Minister may prescribe the amount of the compensation which, the category of persons to whom, the conditions upon which, and any other circumstances under which, a medical scheme may compensate any person in terms of subsection(1). (3) No person shall be compensated for providing services relating to the introduction or admission of a member to a medical scheme in terms of subsection (1) unless the Council has, in a particular case or in general, granted accreditation to such a person. (4) An application for accreditation shall be made to the Council in the manner and be accompanied by such information as may be prescribed, and any other information as the Council may require. (Issue No 33- Supp[ementay) 179 STATUTES OF m REPUBLIC OF Som AFNCA–WDICNE, DENTISmY AND P~cY Medical Schemes Act, No. 131 of 1998 SS. 66-67 SS. 66 – 67
66
Offences and penaltiea.+1) Any person whe
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AI-assisted research summary: This section makes certain false, misleading, or non-disclosure conduct an offence and sets penalties for non-compliance and reporting failures.

66. Offences and penaltiea.+1) Any person whe (a) contravenes any provision of this Actor fads to comply therewith; (b) makes or causes to be made any claim for the payment of any benefit a~egedy due in terms of the rules of a medical scheme, knowing such claim to be false; (c) knowingly makes or causes to be made a false representation of any material fact b a medical scheme, for use in determiningg any right to any benefit alleg- edly due in terms of the rules of the medical scheme; (~ having knowledge of any factor the occurrence of any event affecting his or her right to receive any benefit in terms of the rules of a medical scheme, and who fads to disclose such fact or event to the medical scheme with the intent to obtain from the medical scheme a benefit to which he or she is not entitied or a larger benefit than that to which he or she is entitled; (e) renders a statement account or invoice to a member or any other perso~ knowing that such statement account or invoice is fake and which maybe used by such member or other person to claim from a medical scheme any benefit or a benefit greater than the benefit to which he or she is entitied in terms of the rules of the medical scheme; or ~ compensates or causes to be compensate~ any person for the introduction or admission of a member other than in terms of section 65 or the consenting to keep a member in a medical scheme, shall, subject to the provisions of subsec- tion (2), be guil~ of an offence, and liable on conviction to a fme or to imprisonment for a period not exceeding five years or both a fme and imprisonment. (2) No contravention or faflure to comply with any provision of this Act shall be pun- ishable under subsection (1) if the act or omission constituting that contravention or fadure to comply with any request or requirement is punishable as an offence under the provisions of any other Act of Parliament which controk the professional conduct of any health care pro- vider. (3) Any person who fails to tish the Council or the Registrar with a rem infor- mation, financial statement document or a reply to an enquiry addressed to him or her, as provided for by this Act or any directive under this Act within the preseriied or specified period or any extension thereof, shall irrespective of any C* proceedings instituted under this Ac~ be hable to a penalty as prescribed for every day which the fadure continues, tiess the Registrar, for good cause show waives the penalty or any part thereof. (4) Any pemlty imposed under subsection (3) shall be a debt due to the Council.
67
Regulations.<1 ) me Minister may, afier consultation with the Council, make
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AI-assisted research summary: The Minister may make regulations about listed medical-scheme matters, after consulting the Council.

67. Regulations.<1 ) me Minister may, afier consultation with the Council, make regulations relating t- (a) the provision by medical schemes to their members of written proof of member- ship, and the particulars such proof shafl or may contain; (b) the conditions subject to which any person who has terminated his or her membership of a medical scheme shall be enro~ed as a member or a dependant of a member of any other medical scheme; (c) the assets to be held by a medical scheme in the Repubfic including the titing of the amount which or the extent to which such a medical scheme may invest in particular assets or in particular kinds or categories of assets; (Issue No 33- Supp[ementa~) 181 STATUTES OF THE WPUBLIC OF SOUTH AFNCA–MEDICNE, DENTISTRY AND PHmACY Medical Schemes Act, No. 131 of 1998 SS. 67-68 SS. 67-68 “b (~ the manner in which any payment due by a medical scheme shall be made; (e) the administration of the affairs of medical schemes, including the regulating, controlling, restricting or prohibiting of any act relating to such administration; ~ the fees to be paid to the Council in respect of— (i) an application for the registration of a medical scheme; (ii) the registration of a medical scheme; (iii) the change of the name of a medical scheme in terms of section 23; (iv) the registration of an amendment or rescission of a rule, or an addition to the rules of a medical scheme, in terms of section 31; (v) the fees payable by an appellant in terms of section 50 (3); and (vi) the fees payable by an intermediary in terms of section 58 (4); (g) the prescribed scope and level of minimum benefits to which members and their registered defendants shall be entitled to under the rules of a medical scheme; (h) the minimum membership required for registration of a medical scheme; (i) the conditions under which a medical scheme may provide benefits in terms of a personal savings account; ~) the conditions under which a person may act as an administrator of a medical scheme; (k) the nett assets to be held by a medical scheme; (~ the waiting periods to be applied in the case of pre-existing sickness conditions, open enrohnent periods, and premium penalties within defined bands for per- sons joining ody late in life and such other measures against adverse selection as maybe appropriate; (m) provisions associated with the manner of providing managed health care to members; and (n) all other matters which he or she considers necessary or expedient to prescribe in order that the purposes of this Act maybe achieved. (2) me Minister shall, not less than three months before any regulation is made under subsection (1), cause a copy of the proposed regulation to be published in the Gazette together with a notice declaring his or her intention to make that regulation and inviting interested persons to furnish him or her with their comments thereon or any representations they may wish to make in regard thereto. (3) me provisions of subsection (2) shall not apply in respect of— (a) any regulation made by the Minister which, after the provisions of that subsec- tion have been complied with, has been amended by the Minister in conse- quence of comments or representations received by him or her in pursuance of a notice issued thereunder; or (b) any regulation in respect of which the Minister, after consultation with the Council, is of the opinion that the public interest requires it to be made without delay.
68
Repeal of laws, and transitional arrangements.+ 1) Each of the laws referred to
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AI-assisted research summary: Some laws listed in Schedule 1 are repealed to the extent stated there, but the repeal does not affect Schedule 2 transitional arrangements.

68. Repeal of laws, and transitional arrangements.+ 1) Each of the laws referred to in the fist two columns of Schedule 1 is hereby repealed to the extent specified opposite that law in the third column of that Schedule. (2) me repeal of those laws does not effect any transitional arrangements made in Schedule 2. (Issue No 33- Supp/ementa~) 183 STATUTES OF THE mPUBLIC OF SOUTH AFWCA–MEOICmE, DENTISTRY AND PHARMACY Medical Schemes Act, No. 131 of 1998 s. 68 – sch. 2 S. 68- Sch. 2 (3) me transitional arrangements in Schedule 2 must be read and applied as substan- tive provisions of this Act.

Part

Schedule 2.

69
Short title and commencement.—~is Act shall be called the Medical Schemes
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AI-assisted research summary: This section gives the Act its short title and says it starts on a date set by the President by proclamation in the Gazette.

69. Short title and commencement.—~is Act shall be called the Medical Schemes Act, 1998, and shall come into operation on a date fixed by the President by proclamation in the Gazette. Number and year of law I Act No. 72 of 196J Act No. 95 of 1969 Act No. 49 of 19J2 Act No. 43 of 19J5 Act No. 51 of 19J8 Act No. 42 of 1980 Act No. J2 of 1981 Act No. 59 of 1984 Act No. 23 of 1993 Schedule 1 LAWS WPEALED BY SEaION 68 (1) Short title Extent of repeal Medical Schems Act, 196J Medical Schemes Amendment Act, 1969 Medical Schemes Amrrdment Act, 19J2 Medical Schemes Amendment Act, 19J5 Medical Schemes Amendment Act, 19J8 Medical Schemes A~ndment Act, 1980 Medical Schems Amendment Act, 1981 Medical Schemes Amendment Act, 1984 Medical Schemes Amendment Act, 1993 Schedule 2 TRANSITIONAL ASSANGEmNTS The whole The whole The whole The whole The whole The whole The whole The whole The whole

Part

Schedule 2

1
Council for MtiIcaI Schemes.-The Council for Medical Schemes established by section 3 and any
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AI-assisted research summary: The Council for Medical Schemes and committees under section 10 are treated as appointed under this Act for six months from commencement.

1. Council for MtiIcaI Schemes.-The Council for Medical Schemes established by section 3 and any committee appointed under section 10 of the Medical Schemes Act, 196J (Act No, 72 of 196J), shall be deemed to have been appointed in terms of sections 3 (1) and 9 (1), respectively, of this Act for a period of six months as from the date of commencement of this Act.
2
Assets and Iiatilities.-(l ) Immovable property of the State used by the Council and its employees
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AI-assisted research summary: The section transfers certain State property, rights, liabilities, and records to the Council, with some movable assets able to be excluded by the Minister.

2. Assets and Iiatilities.-(l ) Immovable property of the State used by the Council and its employees immediately before the date of commencement of this Act remains at the disposal of the Council on terms and conditions as maybe agreed on between the Council and the Minister. (2) All movable assets of the State which were used by or which were at the disposal of the Councii and its employees immediately before the date of the commencement of this Act, except those assets excluded by the Minister, become the property of the Council. (3) As from the date on which this Act shall come into operation, all contractual rights, obligations and liabilities of the Wpartmerrt of Health which relate to the activities of the Council, are vested in the Council. (4) All financial, administrative and other records of the Depaflmnt of Health which relate to the activities of the Council, including all documents in the possession of that Depafimcnt immediately before the date on which this Act shall come into operation, shall be transferred to the Council.
3
Transfer of offtcers and employees.+1) Any person appointed in terms of section 13 of the Medical
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AI-assisted research summary: Some transferred officers and employees keep their pay and service terms, and a State officer or employee may be transferred to the Council only with written consent and departmental approval.

3. Transfer of offtcers and employees.+1) Any person appointed in terms of section 13 of the Medical Schemes Act, 196J shall be deemed to have been appointed in terms of section 18 of this Act for a period of nine months from the date of the commencement of this Act on the same terms and conditions under which he or she previously served. (2) Any oficer or employee in the employment of the State may, with his or her written consent and the consent of the head of the ~partment in which he or she is employed, be transferred to a post at the Council to assist the Registrar in the performance of his or her functions or duties, afier which he or she shall from the date of his or her transfer be deemed to have been appointed under section 8 (a) of this Act: Provided that— (a) his or her salary or salary scale in ~spect of the post shall not be less favorable than the salary or salary scale which was applicable to him or her as a person employed by the State; (b) any sick or vacation leave which stood to his or her credit immediately prior to his or her transfer, shall be deemed to be leave credited to him or her in the employment of the Council; (c) pensionable service accrued or bought back by him or her before his or her transfer shall be deemed to be pensionable service performed by him or her in the ernploymnt of the Council; (~ any other conditions of service shall not be less favorable than those under which he or she previously served; and (e) no person shall, as a consequence of such transfer and appointment, acquire a retirement age which is higher than that which applied to him or her in the employment of the State. (3) The salary or salary scale referred to in subsection (2) (a) may not be reduced without the written consent of the person concerned. (Issue No 33- Supplementa~) 185 STATUTES OF THE WPUBLIC OF Som AFWCA–MEDICNE, DENTISTRY AND PHAWACY Medical Schemes Act, No. 131 of 1998 Sch. 2 Sch. 2
4
MMcal Schemes.+1 ) Any medical wheme which immediately prior to the commencement of this Act
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AI-assisted research summary: Medical schemes had to amend their rules within six months of commencement and submit them to the Registrar; the Registrar could grant up to a 3-month extension for good cause.

4. MMcal Schemes.+1 ) Any medical wheme which immediately prior to the commencement of this Act was registe~d as a medical sche~ under section 15 of the Medical Schemes Act, 1967, shall be deemed to be registered as a medical scheme in terms section 24 (1) read with sections 26 and 32 of this Act. (2) Any medical scheme which immediately prior to the commencement of this Act was established as a medi- cal scheme under the Ugal Succession to the South African Transport Services Act, 1989 (Act No. 9 of 1989), the hbour Relations Act, 1995, (Act No. 66 of 1995), the South African Police Services Act, 1995 (Act No. 68 of 1995) and the Comctional Services Act, 1959 (Act No. 8 of 1959) shall be deemed to be a medical scheme registered in terms of section 24(1) read with sections 26 and 32 of this Act. (3) A medical scheme shall w“thin six months from the date of the commencement of this Act amend its rules in order to comply with the provisions of this Act; and shall submit such rules to the Registrar in terms of section 31 of this Act. (4) me Registrar may, on good cause shown, grant extension to a medical scheme to comply with the pro- visions of subsection (3) for a further period of up to 3 months. (5) A person who fails to comply with the provisions of subsection (3) shall be guilty of an offence. .,- (Issue No 33- Supplemental) 187

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Medical Schemes Act

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Provisions of Medical Schemes Act

CHAPTER 2

Part 1: Council

Part 2: Registrar, Depu@ Registrar and staff of Council

CHAPTER 4

CHAPTER 5

CHAPTER 6

CHAPTER 8

CHAPTER 9

CHAPTER 10

CHAPTER 12

CHAPTER 1

Part 2: Registrar, Depu~ Registrar and stafof Council

CHAPTER 11

Schedule 2.

Schedule 2

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