CIPC: Requirements on filing of CM 100 applications on insolvent voluntary liquidations form CM26LIQ statement of affairs

CIPC: Requirements on filing of CM 100 applications on insolvent voluntary liquidations form CM26LIQ statement of affairs

• 30 April 2024
• CIPC
• South African Accounting Academy

CIPC is committed to customer services and the effective and efficient processing of applications and associated information. A request was received from the Master of the High Court, that minimum requirements must be set and adhered to for the completion of the CM100. The Master of the High Court relies on the content and reliability of the CM100 to appoint an appropriately qualified liquidator and poorly completed CM100 is severely impacting the ability of the Master of the High Court in the administration of liquidations.

CM100 is only applicable to insolvent liquidations and therefore if insolvency cannot be indicated on the CM100, then CoR40.1 and supporting documents must be submitted.

Therefore, the CM100 submitted to together with CM26Liq for companies and close corporations resolving to commence liquidation MUST comply with the requirements set out in the list (in the CIPC Notice) with immediate effect.

Customers are also reminded about the certification requirements for identity documents and customer must familiarise themselves with Practice 2 of 2022 (https://www.cipc.co.za/wp-content/uploads/2022/06/Practice_Note_-_CERTIFICATION_2.pdf) or any other notices, guidance notes or practice notes relating to the requirement for certification of documents submitted to the CIPC.

If the application does not meet the above requirements, it will be rejected. Any false or misleading information on the CM100 is a criminal offense in terms of Section 214 of the Companies Act, 2008 and those deposing the CM100 that contains false or misleading information may be prosecuted.

Click here to download Notice 35 of 2024:

https://www.cipc.co.za/wp-content/uploads/2024/04/Notice_CM100-Liquidations.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 issued by CIPC as the regulator.
• 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.

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 and to be aware of the latest media statements issued by CIPC as the regulator.

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