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Companies Tribunal: Practice Note 1 of 2024
- 26 March 2024
- Regulatory Compliance and Legislation
- South African Accounting Academy
From 1 March 2024, the Companies Tribunal will apply this interpretation in matters related to the application of Section 61(7) to NPCs, until determined otherwise judicially.
It is interpreted by the Companies Tribunal that Section 61(7) does apply to NPCs, and not just to public companies, based on (inter alia) the following:
- Section 61(7) stipulates when a public company must convene an annual general meeting of its shareholders.
- Sections 10(1) and 10(3) of the Companies Act states that every provision of the Act applies to an NPC.
- Sections 58 to 65 (read with the changes required by the context) apply to an NPC only if the company has voting members.
- Sections 58 to 65, and particularly Section 81, distinguish between public and private companies. There is no logical reason then why the choice is made that the provisions relating to public companies, and not those in respect of private companies, will be made applicable to an NPC with members.
The Companies Tribunal’s mandate is to adjudicate applications, resolve disputes through Alternative Dispute Resolution (ADR) and to perform any other function assigned to it by any law in terms of Schedule 4 of the Act.
Click here to download the Practice Note:
https://www.companiestribunal.org.za/wp-content/uploads/2024/03/CT_Practice_Note_1_of_2024.pdf
Relevance to Auditors, Independent Reviewers & Accountants:
- Accountants and other professionals providing company secretarial services should stay informed of the latest developments that are published by the Companies Tribunal.
- Especially with regards to how the Companies Tribunal will interpret certain sections of the Companies Act, practitioners should be aware of how this affects and applies to their clients.
Relevance to Your Clients:
- Companies should stay informed of the latest developments that are published by the Companies Tribunal.