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Small and Micro Enterprise Development Decree 2001

REPUBLIC OF FIJI

SMALL AND MICRO ENTERPRISE DEVELOPMENT DECREE 2001
(DECREE NO. 3 OF 2001)

TABLE OF SECTIONS

Part 1 - PRELIMINARY

1. Short title and commencement
2. Interpretation

Part 2 - ESTABLISHMENT AND FUNCTIONS OF THE CENTRE AND THE BOARD

3. Establishment of the Centre
4. Aims of the Centre
5. Functions of the Centre
6. Board of Directors
7. Functions of the Board
8. Meetings of the Board
9. Remuneration for members of the Board
10. Resignation and removal

Part 3 - MANAGEMENT AND ADMINISTRATION

11. Managing Director and other employees
12. Centre to consult with Fiji Training Council
13. Eligibility for benefits for small and micro enterprises

Part 4 - FINANCIAL PROVISIONS

14. Finances
15. Accounts and audit
16. Power to borrow and invest
17. Minister may request information

Part 5 - MISCELLANEOUS

18. Minister may give policy directions
19. Exemption from personal liability
20. Annual Report
21. Power to delegate functions
22. Regulations
23. Transitional

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(INTERIM CIVILIAN GOVERNMNET DECREE NO.3)

IN exercise of the powers conferred upon the Interim Civilian Government by section 4 of the Interim Civilian Government (Transfer of Executive Authority) Decree No. 19 of 2000, I, Josefa Iloilovatu Uluivuda, President of the Republic of Fiji, acting on the advice of the Cabinet hereby make this Decree to establish a National Centre for Small and Micro-Enterprises Development to develop, promote and support small and micro-enterprises and for related matters.

Part 1 - PRELIMINARY

Short title and commencement

1. This Decree may be cited as the Small and Micro Enterprise Development Decree 2001 and comes into force on a date appointed by the Minister by notice in the Gazette.

Interpretation

2. In this Decree, unless the context otherwise requires-

"Board" means the Board of Directors appointed under section 6;

"business" means a small or micro enterprise engaged in manufacturing, processing, extraction, production, agriculture, agro-processing, tourism, wholesale and retail trade, service industries, cottage or home-based industries, export and other industrial or commercial services;

"Centre" means the National Centre for Small and Micro-Enterprise Development, established by section 3;

"co-operative" means a co-operative registered under the Co-operatives Act 1996;

"enterprise" means any going concern which trades in goods or services for profit;

"Fiji National Training Council" means the Council as abolished under the Fiji National Training Act (Cap. 93);

"foreign investor'' has the meaning given by the Foreign Investment Act 1999;

"Managing Director" means the person appointed as such under section 11;

"micro enterprise" means any enterprise which has a turn over or total assets not exceeding $30,000 and employs not more than 5 employees;

"private sector" means any person, or body or association of persons engaged in a business or any developmental efforts, operating in Fiji, of which the majority shareholder is not the Government;

"public officer" has the meaning given by the State Services Decree 2000;

"small enterprise" means any enterprise which has a turnover or total assets between $30,000 and $100,000 and employs between 6 and 20 employees;

"non-government organisation" means any non-profit organisation registered or incorporated under a written law which is not controlled by the Government or the private sector.

Part 2 - ESTABLISHMENT AND FUNCTIONS OF THE CENTRE AND THE BOARD

Establishment of the Centre

3.-(1) This section establishes a National Centre for Small and Micro-Enterprise Development.

(2) The Centre shall be a body corporate with perpetual succession and has power to hold land and any other property to enter into agreements, to borrow or lend money, to mortgage, pledge, sell, or otherwise encumber or dispose of its property to employ and dismiss persons, to sue and be sued, and generally to do everything that a legal person can do to achieve any of its functions or aims.

Aims of the Centre

4. The aims of the Centre are-

(a) to support and promote the establishment of small and micro enterprises especially for the benefit of economically and disadvantaged groups including women, youths and persons with different abilities;

(b) to facilitate, through the establishment of adequate support structure and institution, the creation and promotion of an environment conducive to the development and viability of small and micro enterprises;

(c) to intensify and expand programmes for training in entrepreneurship and business management;

(d) to facilitate access to funds and to complement and supplement financing programmes for small and micro enterprises.

Functions of the Centre

5.-(1) The functions of the Centre are-

(a) to prepare and co-ordinate training programmes in entrepreneurship and business management;

(b) to provide consultancy services;

(c) to gather and disseminate business information;

(d) to provide clinical and advisory services;

(e) to pilot and develop new business opportunities;

(f) to assist in the development of marketing facilities or services;

(g) to undertake research for the proper carrying out of its functions and aims including the development of technology for the use of small and micro enterprises;

(h) to provide or source loans or grants to small and micro enterprise

(i) to establish the mechanism for access to and transfer of technology required by small and micro enterprises;

(j) to facilitate access to an equitable share of Government contract, incentives and preferences for small and micro enterprises;

(k) to institute safeguards for the protection and stability of the provision of credit to small and micro enterprises;

(l) to promote linkages between small and micro enterprises and other enterprises, both local and foreign, by encouraging subcontracting arrangements;

(m) to facilitate assistance of the private sector and non-government organisations in the enhancement of small and micro enterprise development through the promotion and participation of voluntary private organisations, viable industries and trade associations;

(n) to establish an evaluation mechanism for a balanced and sustainable development through monitoring the economic contributions and environmental effects of small and micro enterprises;

(o) to manage its resources, programmes, administrative and financia1 operations effectively and efficiently;

(p) to carry out any other functions under this Decree or any other written law.

(2) The Centre may charge fees in carrying out any of the functions referred to in subsection (1) or aims under section 4.

Board of directors

6.-(1) There shall be a Board of directors for the Centre appointed by the Minister consisting of-

(a) a chairperson;

(b) 2 members to represent the employers;

(c) 2 members to represent the employees;

(d) 2 members to represent non-government organisation; and

(e) 2 Government representatives.

(2) The chairperson shall be a person with wide experience in economic, financial or commercial field.

(3) The members appointed under paragraphs (1) (b), (c), (d) or (e) shall have experience in the economic, financial, or industrial field.

(4) The members of the Board may be appointed for a term of 3 years and are eligible for re-appointment to a further term.

Functions of the Board

7.-(1) The Board shall promote, stimulate, facilitate and enhance the development of small and micro enterprises for the benefit especially of disadvantaged groups including women, youths and persons with different abilities.

(2) In carrying out its functions under subsection (1), the Board shall-

(a) advise the Government on policies on any matter relating to small and micro enterprises;

(b) approve loans or grants to small or micro enterprises;

(c) monitor, review and assess the progress of the activities carried out by the centre;

(d) oversee the design of strategies for the implementation of financial incentives for small and micro enterprises;

(e) ensure that a network and an information system are established on small and micro enterprises;

(f) carry out any other functions assigned to it under this Decree or any other written law.

Meetings of the Board

8.-(1) The Board shall meet at least 6 times every year.

(2) If the chairperson is absent from a meeting of the Board, the members present at the meeting shall elect another member to preside at that meeting.

(3) The Board may request a person to attend a meeting of the Board for the purpose of assisting or advising the Board but the person is not entitled to vote on any of the matters discussed at the meeting.

(4) A quorum at a meeting of the Board is 6 members.

(5) The decision of the Board shall be by a majority vote and in the case of an equality of votes, the person presiding at the meeting shall have a casting vote.

Remuneration for members of the Board

9. The members of the Board are entitled to allowances fixed by the Minister.

Resignation and removal

10.-(1) A member of the Board may resign by notice in writing addressed to the Minister and the resignation shall take effect from the date the notice is received by the Minister or by such other person as may be authorised by the Minister to receive it.

(2) The Minister may remove a member of the Board for misconduct or misbehaviour or for any other good reason that may warrant the removal of a member.

Part 3 - MANAGEMENT AND ADMINISTRATION

Managing Director and other employees

11.-(1) There shall be a Managing Director appointed by the Board and who shall be responsible for the management of the Centre.

(2) The Managing Director shall be responsible to the Board.

(3) The Board may employ other persons, including employees on secondment from other organisations, on terms and conditions that the Board considers appropriate.

(4) Public officers may, with the approval of the Public Service Commission, be seconded to the Centre on terms and conditions agreed to between the Board and the Public Service Commission.

(5) A person including a member of the Board who has an interest in a small or micro enterprise that is entitled to be assisted by the Centre before or after his or her appointment under this Decree shall declare it to the Board.

(6) A person referred to in subsection (5) shall not take part or vote on any matter before the Board for which the person has an interest.

(7) The acquisition of an interest in a small or micro enterprise that is entitled to be assisted by the Centre shall not be a ground for terminating an appointment of a person under this Decree.

Centre to consult with Fiji National Training Council

12. The Centre shall coordinate and provide training programmes in consultation with the Fiji National Training Council for entrepreneurship, business management, and for the development of small and micro enterprises.

Eligibility for benefits for small and micro enterprises

13.-(1) A small or micro enterprise shall be eligible for assistance, incentives, promotion or have access to training services under this Decree if it meets the following requirements-

(a) the enterprise is licensed or registered under a written law;

(b) in the case of a co-operative, self-funded enterprise, association or single proprietorship, the enterprise shall be wholly owned and funded by a Fiji citizen;

(c) in the case of a company, 100% of the voting share of the company shall vest in a Fiji citizen;

(d) the enterprise is engaged in a business;

(e) the enterprise must not be a branch or subsidiary of an enterprise which is not a small or micro-enterprise;

(f) the enterprise is established by or for the purpose of benefiting economically disadvantaged persons including women, youths and persons with different abilities.

(2) Notwithstanding paragraph (1) (e), a small or micro enterprise may carry out contracts derived from another enterprise that it not a small or micro enterprise.

Part 4 - FINANCIAL PROVISIONS

Finances

14.-(1) The funds of the Centre shall consist of-

(a) money appropriated by Parliament;

(b) any donations or contributions;

(c) any money borrowed under section 16;

(d) interest on investments under section 16;

(e) any fees charged for carrying out any of its functions;

(f) any other money payable to the Centre.

Accounts and audits

15. The Board shall keep proper accounts of the operations of the Centre and such accounts shall be audited by the Auditor-General every year.

Power to borrow and investment

16.-(1) The Board may, with the approval of the Minister of Finance-

(a) borrow money from any source for the operations of the Centre or for the proper carrying out of its functions or functions and aims of the Centre; or

(b) invest funds of the Centre in any type of investment.

(2) At the commencement of the Public Finance Management Act, the provisions relating to borrowing of money and investment in that Act shall apply to this Decree.

Minister may request information

17. The Board shall provide to the Minister any information which the Minister requests in writing in connection with the activities and the financial position of the Board or Centre.

Part 5 - MISCELLANEOUS

Minister may give policy directions

18. The Minister may, in consultation with the Board, give general or specific policy directions to the Board about the operations of the Centre or for the proper carrying out of its functions or the functions and aims of the Centre.

Exemption from personal liability

19. No member or employee of the Board is personally liable for any act that was done or omitted to be done in good faith in carrying out any of the functions, duties or powers under
this Decree.

Annual Report

20.-(1) The Board shall prepare and forward to the Minister within 6 months of the start of each financial year-

(a) a statement of its accounts for the preceding year, audited under section 15; and

(b) a report on its activities, during the preceding year.

(2) The reports and accounts required by subsection (1) must be tabled by the Minister in both Houses of Parliament at the next meeting of Parliament after the Minister receives them.

Power to delegate functions

21. The Board may delegate any of its functions or the functions or aims of the Centre to any person fit to carry out its functions or the functions or aims of the Centre except its power under this section.

Regulation

22.-(1) The Minister may make regulations to give effect to the Provisions of this Decree and in particular to prescribe-

(a) procedures for applying for, issuance, and conditions of loans or grants;

(b) the fees to be charged for the purposes of this Decree;

(c) the management or operations of the Centre.

Transitional

23. Any small or micro enterprise currently established and assisted by the Government before the commencement of this Decree is entitled to the benefits under this Decree and deemed to have come under the authority and administration of the Centre and the Board established under this Decree.

Made at Suva this 9th day of January 2001.

J. I. ULUIVUDA
President of the Republic of Fiji

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