Compliance Notice

A compliance notice may require the person to whom it is addressed to:

1. cease, correct or reverse any action in contravention of this Act;
2. take an action required by this Act;
3. restore assets or their value to a company or person;
4. provide a community service; or
5. take any other steps to rectify the effect of the contravention.

A compliance notice must set out:

1. the person or an association to whom the notice applies;
2. the provision of this Act that has been contravened;
3. details of the nature and extent of the non-compliance;
4. any steps that are required to be taken and the timeframe within which steps must be taken; and
5. any penalty that may he imposed in terms of this Act if required steps are not taken.

A compliance notice remains in force until:

1. it is set aside by the Companies Tribunal or a court upon a review of the notice; or
2. 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:

1. apply to a court for the imposition of an administrative line; or
2. 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.