CATEGORIES
- (2)Account / Profile
- (499)Accounting
- (6)Audit
- (130)Auditing and Assurance
- (1)Business
- (3)Business Rescue
- (71)CIPC
- (6)Compliance
- (7)Ethics and Professionalism
- (39)Financial Reporting
- (1)Government Funding Applications
- (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
- (3)Public Sector
- (97)Regulatory Compliance and Legislation
- (29)SARS Issues
- (13)Sustainability Reporting
- (22)Tax
- (1)Tax Update
- (1)Technology
- Show All
CIPC: Directors who appeared more than once on CIPC records
- 06 December 2024
- CIPC
- South African Accounting Academy
Summary:
The Companies and Intellectual Property Commission (CIPC) has issued a notice regarding the repercussions of Directors who appeared more than once on their records.
Article:
CIPC has observed several requests for the deletion of records of which the Commission does not delete records.
Upon investigation CIPC has found that the companies through their third parties, instead of updating the passport number of a director then add a new record with the latest passport number resulting in 2 records. The system will not view this as a duplicate because an ID number/Passport number is the unique identifier and not the name.
Therefore, the filer must instead “edit” the information of the existing record and update the passport number to that of an already verified passport number through the FAV process. For those companies having two similar records as a result of the above, must take a resolution to remove one record due to duplication, choose “remove” option on the system and attach same when filing the application.
Further to the above some filers have registered companies with incorrect ID numbers of directors and later want to correct using the Director Amendments, the Director Amendment process is for the changes on the records of directors and not for corrections and therefore for risk purposes was not designed to allow change of ID numbers. CIPC therefore request filers to verify the information before filing for correctness to avoid filing incorrect information.
Click here to download Notice 76 of 2024:
https://www.cipc.co.za/wp-content/uploads/2024/12/Duplication-of-directors-information.pdf
Relevance to Auditors, Independent Reviewers & Accountants:
- The Companies Act 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 effecting 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 effecting directors’ amendments.