Circular 9 of 2024: Notice regarding Annual General meetings, Special General meetings and Trustee elections

The primary function of the Council for Medical Schemes (CMS) is to protect the interests of the beneficiaries at all times. To this end CMS is enjoined to monitor whether medical schemes comply with their registered rules and/ or the provisions of the Medical Schemes Act, 131 of 1998 (MSA) and/ or other legislation relating to medical schemes.

Section 29(1)(m) of the MSA determines that no medical scheme shall carry on any business unless a provision is made in its rules regarding the manner of calling the Annual General meetings (AGM) and Special General meetings (SGM) of members, the quorum necessary for the transaction of business at such meetings and the manner of voting.

Section 32 of the MSA determines that “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 a benefit under the rules or whose claim is derived from a person claiming.”

Section 8(h) of the MSA provides that the Council shall, in the exercise of its powers, be entitled to – exempt, in exceptional cases and subject to such terms and conditions and for such period as the Council may determine, a medical scheme or other person upon written application from complying with any provision of this Act.

Medical schemes are encouraged to comply with their scheme rules on the requirement of holding AGMs and SGMs on or before a particular date. Medical schemes are requested to notify the CMS in writing, of the dates on which they intend to hold their AGMs and/or SGMs; as well as the dates on which they intend to hold trustee elections, where applicable.

Download the Circular here