Two SA Reserve Bank (SARB) shareholders have formally requested an extraordinary general meeting to discuss the privatisation of the central bank's ownership.
"We must also clarify shareholders rights and this we cannot do at the annual general meeting," Michael Duerr, one of the shareholders, said in a statement on Wednesday.
Duerr, who lives in Germany, said Mario Pretorius, a South African shareholder, had also requested an extraordinary general meeting within 60 days of April 20.
He said the request was made in a letter to SARB secretary Tiyani Mongwe.
Nearly 13 percent of SARB's private shareholders have reportedly asked for an extraordinary general meeting.
According to FinWeek, Duerr has asked for the discussion of 11 proposals, among them that:
-- the SARB board not discuss, recommend or raise the issue of the Bank's nationalisation before obtaining shareholders' mandate by way of a referendum;
-- SARB annually declare a capital distribution equal to 10 percent of its net profit to shareholders; and
-- Private sector benchmarks not be used in setting the remuneration of the governor and deputy governors.
He also wanted talks on the issue of the rands issued to Zimbabwe to run its economy, and the effect this could have on South Africa.
Duerr's concerns arise from ANC hints at buying out private shareholders, who have in turn indicated that, should this happen, they will demand thousands of rands per share.
SARB's two million shares in private hands trade for about R10 a share --a mechanism intended to shield the Bank from too much government interference. The Bank pays an annual divided of 10 cents a share.
FinWeek reported that while the share price valued the Bank at R20m, shareholders claimed they owned the bank's assets, including USD38 billion in gold and foreign exchange reserves.
On Wednesday, Duerr said he was "pressing hard" to solve outstanding issues.
He had approached both the German Chancellor and German Foreign Minister "because what the SARB is doing is in opposition to one of the treaties between Germany and SA".
Duerr said he had also contacted Finance Minister Pravin Gordhan and Trade and Industry Minister Rob Davies on SARB's "disregard of the law and the rules".
He said he had even met President Jacob Zuma.
"This is about governance."
Asked now much the exercise was costing him, Duerr said "not much -- but it will cost the SARB money at some stage".
He said he favoured SARB's return to the JSE -- "then anyone can sell the shares as they wish".
"It's not about me making money through selling shares -- what it's about is rectifying what is wrong at the SARB."
Duerr said his goal was improved communication and decision-making in matters that concerned shareholders and an overall lowering of tension between the Bank and the shareholders.
He also had complaints about SARB's remuneration committee, as it had granted increases to board members "completely outside the norm and inflation targets."
Duerr contended that the public was entitled to question the SARB governor on monetary policy.
"The uniqueness of the general public's shareholding in the central bank is an important further factor contributing to transparency," he said.
SARB confirmed that it had received a request from shareholders -- signed by Mario Pretorius -- for an extraordinary general meeting of shareholders of the Bank.
"The request was received on Wednesday, April 21 2010," SARB said.
"The matters raised in the letter are receiving the attention of the Bank.
"We will respond to Mr Pretorius." SARB said.
At a SARB AGM in 2008, Duerr claimed items of special business had deliberately not been circulated to shareholders.
These, he claimed, included flagrant contraventions by SARB employees which appeared not to have been investigated or acted on "despite these matters having been brought to the attention of the board".
The Bank's then governor Tito Mboweni found him out of order.
After the meeting, Duerr, who holds five percent of SARB's shares, issued a statement claiming the influence of shareholders had been gradually and drastically inhibited since 1920.
"The inherent value of their investment has been undermined," he contended.
Duerr, who is German, said that because he was not allowed to speak at the meeting, he would call an extraordinary general meeting.
However, SARB counsel Johann de Jager said at the time that a shareholder had to hold 10 percent of voting shares to call an extraordinary meeting.
Pretorius took Mboweni to the Equality Court for discrimination over what he claimed were racist comments made at the same meeting.
The court ruled that the utterances were nothing more than a storm in a teacup.
