Important CoSec Updates

Technical Hitches at CIPC 

The latest news from CIPC advises that they need to improve their website and IT offering.   However, they don’t give a time when it will be completed by.

They are quoted as saying:

“CIPC is in the process of implementing additional technical infrastructure which will be completed in the short term.  This may result in customers experiencing problems when transacting/lodging documents electronically on CIPC’s website.  CIPC apologises for any inconvenience that may be caused”.

New Requirements for Annual Returns 

New requirements for annual return lodgments:

Please make note of the following information regarding annual return lodgments from CIPC:

“All companies and close corporations that are required by the Companies Act, 2008 (the Act) or Companies Regulation 28 to have its annual financial statements audited must file a copy of the latest approved audited financial statements when it files its annual return in terms of Companies Regulation 30(2).  Such copy of the audited financial statements must be filed on the same date that the annual return is filed.  It should be noted that the duty of close corporations to file a copy of its annual financial statements arise out of the amendment of section 58 of the Close Corporations Act by Schedule 3 Part A section 5”

New Requirements for De-registrations 

Companies and CC’s may apply for de-registration of their businesses from the CIPC subject to them ceasing to carry on business and proving that the business has no assets or inadequate assets to allow for the probability of the company being liquidated.

If this is the case, then the company or CC needs to supply certain information on an original letterhead stating and confirming that the company or CC is no longer in business, has no assets and its tax clearance is furnished.  This letter must be signed by each of the directors/members and submitted with copies of their ID’s.

Once this is done correctly the de-registration process will commence.  If this application is not done thoroughly, it will be rejected.

New Requirements for Close Corporation Amendment 

In order to improve controls revolving around change of memberships in a Close Corporation, it is now a requirement of the CC to undertake a meeting of the members to resolve any change of membership.

This needs to be minuted, and an extract must be furnished to CIPC together with the normal CK2 application.  If a member is no longer traceable, then a final court order to this effect needs to be furnished to CIPC.

These measures are introduced in order to improve the quality of the CIPC database and further protect corporate information they have on file.