CIPC_Return relating to directors and register of members of Co-operatives

28 July 2022
Accounting
South African Accounting Academy

This notice emphasises that all applications for the change of directors filed for registration must be in line with Regulations 17 read together with Section 39 of the Act.

Only the particulars of the directors and any changes thereof must be filed with the Registrar of Co-operatives and when there are changes in membership the register of members as kept by the co-operative must be kept at its offices in line with Section 21(d).

Due to the complaints regarding the unauthorized appointments and resignation of directors, as from the 1 August 2022 additional requirement for appointment or resignation of a director is the appointment letter or resignation letter respectively, which must accompany the application.

Failure to comply will result in the rejection of the application for failure to submit the necessary letter.

Click here to download the Practice Note:

http://www.cipc.co.za/za/wp-content/uploads/2022/07/Notice-of-director-and-member-changes-of-co-ops.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, you also need to monitor your client’s compliance with the Companies Act and all relevant notices/practice notices/enforcements issued by CIPC as the regulator.

Relevance to Your clients:

This CIPC practice note clarifies certain operational issues that must be complied with.
The client has a duty to comply with the Companies Act, as well as relevant notices/practice notices/enforcements published by the Regulator.

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