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What is The Tax Faculty’s response to Mr. Engel's allegations that The Tax Faculty’s MoI was illegally amended in 2022?
- 20 March 2024
- Faculty News
- The Tax Faculty
We believe it is a disingenuous and devious allegation without merit. The allegations have been dispelled by a statement issued by Mr. Thabo Moloi, the chairperson of the alumni members association - click here.
A governance review was undertaken during 2021, and it came to light that an initial unapproved draft version of the MoI (“unapproved MoI”) was placed on file at CIPC during August 2019. This draft version of the MoI that was placed on file with CIPC contained material differences from the final MoI provisions approved by the incorporators and documented by Mr. Engel himself.
A material error was the reference to alumni members as “non"-voting, when in fact the incorporators of The Tax Faculty NPC expressly resolved for members to hold voting rights and beneficial ownership in the nonprofit company (see clause 7.2 of the final MoI provisions). In addition, the financial year-end was reflected as a February year-end, when in fact the company was registered at CIPC with a December year-end.
A further material governance issue was the defective and mutually destructive provision included in the unapproved MoI that empowered the SAIT Trust to unilaterally, without following due governance, remove the directorate of The Tax Faculty. Such a clause was draconian and untenable, and it showed a complete disregard for good governance expected within public benefit organisations, and also suppressed the rights of the alumni members.
These errors and deficiencies were corrected and presented to members at The Tax Faculty AGM held on 13 January 2022. The notice for the AGM was published on 15 December 2021, and all members, including the SAIT Trust, were invited to participate at the AGM. The current MoI adopted by the alumni members can be accessed here.