CATEGORIES
- (2)Account / Profile
- (499)Accounting
- (6)Audit
- (125)Auditing and Assurance
- (1)Business
- (3)Business Rescue
- (66)CIPC
- (6)Compliance
- (6)Ethics and Professionalism
- (35)Financial Reporting
- (3)Guides
- (1)Individuals Tax
- (2)Law
- (36)Legal and Compliance
- (2)Management
- (12)Money Laundering
- (1)Personal & Professional Development
- (1)Practice Management
- (1)Professional Ethics
- (1)Public Sector
- (82)Regulatory Compliance and Legislation
- (29)SARS Issues
- (11)Sustainability Reporting
- (21)Tax
- (1)Tax Update
- (1)Technology
- Show All
CIPC: Director Amendments – Resignation of Directors
- 08 November 2024
- CIPC
- South African Accounting Academy
Summary:
The Companies and Intellectual Property Commission (CIPC) has issued a notice on Director Amendments - more specifically on Resignation of Directors.
Article:
The process for director resignation is an automated process wherein the resigning director will receive an OTP and will have to submit the OTP to confirm resignation and effecting the change. Further, the Companies Act provides that a company must file the changes within 10 business days after the director has ceased to be a director.
Having mentioned the above, companies must follow the process as per the published step-by-step guides available on our website regarding the resignation of directors and back office will query applications which come to the back office when applicants choose “remove” instead of “resign”.
To avoid unnecessary queries, you are advised to submit all director amendments through our eservices system (K2) of which the process is automated.
You can access the step-by-step guide at https://www.cipc.co.za/wp-content/uploads/2024/01/Directors-Amendment-Step-by-Step-Resignation.pdf
Click here to download Notice 71 of 2024:
https://www.cipc.co.za/wp-content/uploads/2024/11/Resignation-of-Directors1.pdf
Relevance to Auditors, Independent Reviewers & Accountants:
- The Companies Act and Regulations is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
- As an auditor, independent reviewer and accountant, you also need to monitor your client’s compliance with the Companies Act and all relevant notices/enforcements/practice notes/customer letters issued by CIPC as the regulator.
- Company Secretarial staff play a critical role in bridging the gap between entities and CIPC. As legislation, regulations and tax law are continuously changing and evolving, it is of utmost importance for companies and company secretarial practitioners to keep abreast of such changes in so that companies continue to meet their compliance obligations.
- Where you perform these compliance tasks on behalf of your client, you need to ensure that you comply with all relevant notices/enforcements/practice notes/customer letters issued by CIPC as the regulator – especially with regards to process online directors’ amendments.
Relevance to Your Clients:
- An entity (company or close corporation) has a duty to comply with the Companies Act, and all relevant notices/enforcements/practice notes/customer letters issued by CIPC as the regulator.
- Your clients should also be aware of relevant guidance that is issued by the CIPC – especially with regards to process online directors’ amendments.