Be aware of the possible consequences of COVID-19 on the continued trading of businesses;
Be aware of the CIPC publications relating to COVID-19;
Know the contents of CIPC’s Practice Note and media releases as a result of COVID-19:
What CIPC’s monitoring responsibilities are.
Which steps CIPC will take at this stage.
Which steps CIPC will not take at this stage.
How to rectify incorrect information submitted.
Be aware of the legal references, i.e. Companies Act, Companies Regulations, etc; and
Be aware of the potential present and future legal consequences arising with insolvencies.
Content
The webinar will cover the following topics:
Consequences of the national lockdown on businesses and their ability to trade.
Legal Requirements:
Paragraph 4(1)(b) of the Companies Regulations (GNR 351 of 26 April 2011).
Section 22 of the Companies Act.
Lockdown Regulations.
Practice Note 1 of 2020:
Impact of CIPC’s actions on companies and businesses unable to trade.
CIPC’s process of cancelling the certificates of companies not designated as essential services.
Insolvency considerations:
Commercial vs Factual insolvency.
The potential legal consequences arising with insolvencies.
Consideration of the solvency and liquidity test in Section 4 of the Companies Act (and making the connection to the evaluation thereof on the new CIPC Compliance Checklist).
Application of Section 22 of the Companies Act on Close Corporations.
Consideration of Section 129 “financially distressed companies”.
Responses to factual insolvency by companies and your consideration thereof, i.e. subordination agreements, letters of support, guarantees, etc.
Reporting on insolvencies – how, when and to whom?