Legal Appointments: 16.1 and 16.2

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Legal Appointments: 16.1 and 16.2

Unread post by Spice01 » 04 Aug 2009, 08:59


In a scenario where you have a Holding Company (which on its own is a registered entity); under it there are different Divisions (again registered entities); under the divisions there are business units (which are not registered but are accounted for under the divisions) what it the requirements when making the 16.1 and 16.2 appointments/ delegations?

I have the following 2 scenarios, considering that all the registered entities have individual CEO’s even though they form part of the executive team of the holding company;
1. Isn’t the 16.1 an automatic appointment for every CEO of a registered entity meaning that within their scope all the CEO’s of the divisions are 16.1 for their divisions and the CEO of the Holding company is a 16.1 for the holding entity (immediate) or,
2. Can the CEO of the holding company appoint the CEO’s of the divisions as 16.2 under him?

PS: Thank you for the forum, I've always found the advice and articles on SA Labour Guide very useful and this is an added step to make information accessible.

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Joined: 16 Apr 2009, 11:06

Re: Legal Appointments: 16.1 and 16.2

Unread post by tinus » 04 Aug 2009, 11:00

The Occupational Health and Safety Act defines the CEO as follows:

Chief Executive Officer

In relation to a body corporate or an enterprise conducted by the state, means the person who is responsible for the overall management and control of the business of such body corporate or enterprise.

(Based on Legislation in section 1, of the Occupational Health and Safety Act)

The CEO is automatically appionted as the 16(1) by the Occupational Health and Safety Act (no letter of appointment necessary).

Under Section 16 of the OHS Act the chief executive officer is charged with certain responsibilities, these responsibilities are:

1) Every chief executive officer shall as far as is reasonably practicable ensure that the duties of his employer as contemplated in this act are properly discharged
2) Without derogating from his responsibility or liability, a chief executive officer may assign any duty contemplated in the said subsection, to any person under his control, which person shall act subject to the control and directions of the chief executive officer
3) The provisions of this section shall not, subject to the provisions of section 37, relieve an employer of any responsibility or liability under this act. In other words the CEO stays accountable
4)The head of any state department shall be deemed to be the chief executive officer of that department
Tinus Boshoff
Health and Safety Expert
SA Labour Guide Forum Team

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