Overview  

Our national lockdown has caused and continues to cause companies and businesses to go into financial distress.  What happens if a company is temporarily insolvent and still carrying on business?

In their duty to monitor compliance with the Companies Act and Regulations, CIPC would usually see the above as carrying on business recklessly. But now, they have issued a Practice Note that provides relief to businesses in this regard.  Also related to COVID-19 consequences, CIPC will revoke business permits of certain companies that obtained certificates for use during the lockdown period.

During this webinar we will discuss the above as well as the impact of CIPC’s actions on companies and businesses unable to trade at this stage – taking into account issues relating to insolvency. This is information that every accountant and auditor must be aware of.

Join our technical expert Lettie Janse van Vuuren CA(SA), RA on 23 April 2020 from 11:00 a.m. to 1:00 p.m. as she unpacks the latest CIPC communications issued as a direct result of COVID-19, the practical effect on businesses, and the reporting obligations of the accountants and auditors of these businesses.

 Learning objectives 

 By the end of this event the participant should:

• Be aware of the possible consequences of COVID-19 on the continued trading of businesses;
• Be aware of the CIPC publications relating to COVID-19;
• Know the contents of CIPC’s Practice Note and media releases as a result of COVID-19:
  • What CIPC’s monitoring responsibilities are.
  • Which steps CIPC will take at this stage.
  • Which steps CIPC will not take at this stage.
  • How to rectify incorrect information submitted.
• Be aware of the legal references, i.e. Companies Act, Companies Regulations, etc; and
• Be aware of the potential present and future legal consequences arising with insolvencies.

Content

 The webinar will cover the following topics:

• Consequences of the national lockdown on businesses and their ability to trade.
• Legal Requirements:
  • Paragraph 4(1)(b) of the Companies Regulations (GNR 351 of 26 April 2011).
  • Section 22 of the Companies Act.
  • Lockdown Regulations.
• Practice Note 1 of 2020:
  • Impact of CIPC’s actions on companies and businesses unable to trade.
• CIPC’s process of cancelling the certificates of companies not designated as essential services.
• Insolvency considerations:
  • Commercial vs Factual insolvency.
  • The potential legal consequences arising with insolvencies.
  • Consideration of the solvency and liquidity test in Section 4 of the Companies Act (and making the connection to the evaluation thereof on the new CIPC Compliance Checklist).
  • Application of Section 22 of the Companies Act on Close Corporations.
  • Consideration of Section 129 “financially distressed companies”.
  • Responses to factual insolvency by companies and your consideration thereof, i.e. subordination agreements, letters of support, guarantees, etc.
  • Reporting on insolvencies – how, when and to whom?

Obtaining your CPD certificate

 This webinar qualifies for 2 CPD hours with your professional body including: ACCA, SAICA, AAT, SAIPA, SAIBA, IAC, CIS, ICBA, LSSA, FPI, and the IBA. The SAAA CPD policy is compliant with IFAC IES7 and is recognised by all relevant professional bodies.

All attendees are issued with a CPD certificate available in an online profile.

About the presenter

 Lettie Janse van Vuuren CA(SA), RA

Lettie is a Chartered Accountant, Registered Auditor, as well as an Assessor and Moderator. She joined SA Accounting Academy in November 2017 as Head of Technical. As a professional trainer and webinar host, she is able to hold the attention of an audience with her relaxed and humorous presentation style.  She has a unique ability to communicate with delegates at their respective levels of knowledge and experience.  Over the last 20 years, she has trained thousands of partners, managers, trainee accountants and other professionals.

She is responsible for researching, compiling and presenting our MCLU (Monthly Compliance and Legislation Updates). She was the Professional Development Manager at SAICA for 4 years and in charge of accrediting new training offices and monitoring existing ones (including the moderation of training offices and trainee assessments).

Who should attend

 The following persons will benefit from attending this webinar:

• Professional Accountants including: CA(SA),PA(SA) and BAP(SA).
• Registered auditors.
• Company secretaries.
• Accounting officers.
• Accounting, company secretarial and auditing support staff.

Price          

• R 475 - Online admission - Individual.
• R950 - Online admission - Company 

Steps to register for the event:

If you already have a profile, login and register for the webinar.

If you don’t have a profile, create a free profile then login and register for the webinar.

• Click here to create a free profile (There is no charge to create a profile and gain access to our free Monthly Practice Management Series).
• Click here to find out about the Technical Resource Centre & CPD Subscription options.

Additional material

 By attending this webinar you will be provided with:

• Summarised slide presentation;
• Reference documents and/or course material where available; and
• You can ask questions during the webinar and you will also have access to me the presenter after the webinar.