CIPC: Non-compliance with the filing of BRP status/progress reports

CIPC: Non-compliance with the filing of BRP status/progress reports

• 06 March 2025
• CIPC
• South African Accounting Academy

Summary:

The Companies and Intellectual Property Commission (CIPC) has issued a notice stating an observation that a significant number of Business Rescue Practitioners (BRPs) are non-compliant with their statutory obligation to filing progress reports on a monthly basis, of the entities they are duly appointed on.

Article:

The Commission has previously communicated and urged practitioners of the exigency to comply with the filing of the monthly progress reports timely in a timely manner, however upon reviewing its records it has observed that there is a disinclination by practitioners to comply with the filing and updating of the legislatively required reports despite previous communication to comply with the provisions of section 132(3) (a)-(b).

In enforcing and fulfilling its functions as per the directive of the Companies Act to enforce and monitor proper compliance of the Act, the Commission will publish a list of practitioners and entities that are non-compliant with the filing and updating of progress reports and hereby informs practitioners that the contents of Notice 44 of 2024 pertaining to license renewal applications, that practitioners are prohibited from renewing their business rescue practitioner licenses until all reports have been brought up to date is hereby retracted and replaced with the notice that practitioners who have failed to file the reports as provided for above, their licenses will be suspended and/or revoked due to their non-compliance.

Practitioners are hereby advised to consistently uphold the core values of good governance and complying with statutory requirements.

Click here to download Notice 9 of 2025:

https://www.cipc.co.za/wp-content/uploads/2025/02/Notice-to-suspend-license-due-to-non-submission-of-reports.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.
• 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 and that you are aware of the latest media statements 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.
• Business Rescue Practitioners (BRPs), and all relevant stakeholders should be aware of the requirements to file status reports and the issues around the automation relating to some BR documents.

Relevance to Your Clients:

• Business Rescue Practitioners (BRPs), and all relevant stakeholders should be aware of the requirements to file status reports and the issues around the automation relating to some BR documents.
• An entity (company or close corporation) has a duty to comply with the Companies Act, and all relevant notices/enforcements/practice notes and to be aware of the latest media statements issued by CIPC as the regulator.

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