A compliance notice may require the person to whom it is addressed to:
- cease, correct or reverse any action in contravention of this Act;
- take an action required by this Act;
- restore assets or their value to a company or person;
- provide a community service; or
- take any other steps to rectify the effect of the contravention.
A compliance notice must set out:
- the person or an association to whom the notice applies;
- the provision of this Act that has been contravened;
- details of the nature and extent of the non-compliance;
- any steps that are required to be taken and the timeframe within which steps must be taken; and
- any penalty that may he imposed in terms of this Act if required steps are not taken.
A compliance notice remains in force until:
- it is set aside by the Companies Tribunal or a court upon a review of the notice; or
- the Commission issues a compliance certificate.
If the requirements of a compliance notice have been satisfied, the Commission must issue a compliance certificate.
If a person to whom a compliance notice has been issued fails to comply with the notice, the Commission may either:
- apply to a court for the imposition of an administrative line; or
- refer the matter to the National Prosecuting Authority for prosecution as an offence in terms of section 214(3) of the Act.
If the Commission and the respondent have agreed on a resolution of the complaint, the Commission may:
- record the resolution in the form of an order; and
- if the person who is the subject of the complaint consents to that order, apply to the High Court to have it confirmed as a consent order.
The Court may:
- make the order as agreed and proposed in the application,
- make changes to the draft order before making it an order of the court; or
- refuse to make the order.
A confirmed consent order:
- may include damages; and
- when damages are awarded, allows the recipient to also apply for an award of civil damages.
A court, on application by the Commission, may impose an administrative fine
- only for failure to comply with a compliance notice; and
- not exceeding the greater of 10% of the respondent’s turnover for the period during which the company failed to comply with the compliance notice; and
- the maximum amount prescribed by the Minister is R1 million.