BOMU urges CIPA: 'cancel COSBOTS EGM'
-->Spira Tlhankane | Friday September 18, 2020 17:42
Amongst the reasons they advanced in a letter from BOMU president, Phemelo Lesokwane is that conducting a virtual meeting with over 2, 000 members and hoping to achieve the objective of the meeting will not be feasible.
“The provision to host company meeting through a virtual method as per Second Schedule Section 3 (b) of the Companies Act, is not “inserted” anywhere in the current COSBOTS Constitution at Section 13 as COSBOTS claim in their correspondence,” read the letter.
Lesokwane also said the document that is proposed to be adopted has too many parts that are at variance with the provisions of the Companies Act.
“Having thoroughly perused the new COSBOTS Constitution draft, it has come to light that it ‘suffers from lack of focus and particularity’.
“Its articles are too cluttered with unnecessary detail and run-on clauses that mostly lose cohesion and coherence and end up presenting contradictory information or meaning,” he added.
Lesokwane further said the description of the criteria used to elect the Board and institute its powers amongst others need to be called into question and rectified.
“For over 10 years, almost all Boards seemed to have been comfortable with AGMs transacting resolutions with 1.5% (25 members) of 2, 000 unrepresented members whose royalties are the lifeblood of the company.
This in literal terms means that the Boards and company employees have had unfettered access to completely subsist on the rights holders’ royalties.”
Lesokwane argued that the reason they wanted the EGM called off was because they felt there was no rush to adopt the new draft constitution. He advised that they should take time to have it properly finalised and any newly elected Board shall proceed to finish the remaining work.
Contacted for comment, CIPA spokesperson, Marietta Magashula said the letter had been received and will be duly responded to. CIPA, as COSBOTS’ mother body, is forced to make a decision over the issue. COSBOTS spokesperson, Seeletso Lekgaba said COSBOTS knew about the letter but was humstrung to say anything more because she was in a virtual meeting.