Enforcement of beneficial ownership filings and securities registers

The Companies and Intellectual Property Commission (CIPC) implemented a beneficial ownership register from 01 April 2023 on a voluntary basis. The filing of beneficial ownership filings and securities/beneficial interest registers became mandatory from 24 May 2023 upon promulgation of the Amended Companies Regulations to give full effect to the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act 22 of 2022.

We have noted that several entities which were supposed to file their beneficial ownership information and securities registers have not filed as required. This notice serves as a reminder for those entities who have not filed, to file accordingly and not wait for the annual return anniversary period.

The Commission will continue engaging the entities to enforce filing of their beneficial ownership information. The Commission will also continue to conduct inspections to verify if the filed beneficial ownership information that is on our records corresponds with records kept by respective entities.

Failure to comply will lead to a formal investigation and the issuance of compliance notices, and/or a court sanctioned administrative fine. For guidance on how to file BO declaration, https://www.cipc.co.za/wp-content/uploads/2023/08/USER-GUIDELINES-BO-LEGISLATIVE-REQUIREMENTS_Aug-23.pdf

Notice 54 of 2024

Filing of prospectuses can be made online as from 01 September 2024

CIPC embarked on a process to streamline the process of prospectus registration by developing an electronic filing capability to assist clients. This is in line with the dtic’s Medium Term Strategic Plan: To promote structural transformation, towards a dynamic industrial and globally competitive economy and to broaden participation in the economy to strengthen economic development.

From 1 September 2024 clients will be required to file a prospectus using the e-services at https://eservices.cipc.co.za.

However, kindly continue using the e-mail address: prospectus@cipc.co.za during the pilot phase which will run for a two-week period. During the filing period, the published turnaround times and fees as per Companies Act will still apply.

We would like to bring to your attention that in the event of a rejection of the final prospectus or a supplementary prospectus, clients are given five business days to rectify and finalize their filing. Failure to address the required changes within the stipulated timeframe will result in the necessity to lodge a new filing, for which the client will be liable to pay the published fees.

Notice 52 of 2024

Close Corporation transfer of member’s interest

As part of improving the controls relating to change in membership in a Close Corporation (CC), the following document will be required to be submitted with any CK2 for the change in member’s interest as from 12 August 2024:

The proof of transfer of the member’s interest in the CC, indicating the place and date of the transfer and must be signed by a witness.

The above stipulated are essential requirements in enforcing the transfer of member’s interest as enshrined in section 34 of the Close Corporations Act 69 of 1984 (the Act), which focuses on the attachment and sale in execution of member’s interest, section 35 which deals with the disposal of interest of deceased member, section 36 which deals with cessation of membership by order of Court and section 37 which looks at other dispositions of member’s interests.

We trust that you will find the above in order.

Notice 51 of 2024

Progress update on objectives outlined in the media release published on 06 August 2022

Inter-Regulator Investigation On Nova Propgrow Holdings Ltd, Sharemax Investments (Pty) Ltd And The Property Syndication Industry

1. On 10 August 2022, the CIPC published a Media Release (“the publication”) titled “COMPLIANCE NOTICE ISSUED TO NOVA PROPGROW GROUP HOLDINGS LTD”, with a subheading “Inter-Regulator Investigation Following Failure to Satisfy the Commission from a Notice to Show Cause Regarding Reckless Trading or Trading Under Insolvent Circumstances”.

Media Release 5 of 2024

Delays in processing re-instatement applications (form COR40.5) and common causes for non-processing

The CIPC would like to inform its customers that once again delays in the processing of re-instatement applications are experienced. The incoming volume of applications is still high, and this is being exasperated by multiple submissions by customers and non-adherence to document and process requirements. The high incoming volumes are further affected by customers sending enquiries to processing mailboxes.

The processing mailbox re-instatements@cipc.co.za is strictly dedicated to the processing of re-instatement applications (Form CoR40.5 and re-instatement court orders). We kindly request that customers do not send any general enquiries or other applications to this mailbox. Each matter received by this mailbox is converted into an electronic image which is then added to the queue for matters requiring processing – this adds to the volume of matters the team must process to reach a valid application and increases the turnaround time of processing. Sending multiple applications and enquiries to different mailboxes will not expedite the processing of your request. In fact, it may cause delays in the overall processing time for all customers.

For any enquiries, please refer to the notice “CIPC enquiries system not available – alternative processes” published on 19 March 2024. This will ensure that your query is directed to the correct department for assistance.

To minimize the rejection or non-processing of your application, please ensure that you meet all the necessary requirements before submitting your re-instatement application. For a comprehensive list of requirements, please visit www.cipc.co.za / enterprise maintenance / and select the right category / Changes to Management, Admin & Governance / Re-instatement.

Here are some common causes for non-processing that you should be aware of: –

− To ensure the successful tracking of your application, please ensure you have sufficient funds (R200) available in the indicated customer code on the CoR40.5 form.

− Ensure that the customer code is clear and legible.

− When submitting your application, please ensure that all attachments are in PDF format (not WinZip, Word, Excel, JPEG, or other emails etc.) and included in a single email. We are unable to download attachments from links or other websites.

− Ensure that your scanned attachments are of good quality and legible for processing.

− If the application is being submitted by a representative on behalf of the company or close corporation, please include a valid mandate document.

− Include sufficient documentary proof to prove that the company or close corporation was in business, had outstanding assets or liabilities, or had any other economic value. Examples of acceptable proof include bank statements, deed search, intellectual property registrations, share certificates, outstanding tax notifications, lease agreements, and asset ownership documents.

Kindly ensure that your application meets all process and document requirements before submitting to re-instatements@cipc.co.za with all attachments in PDF format and as a single e-mail.

Once you have received confirmation that your re-instatement application has been processed, please continue to file all outstanding Annual Returns, Beneficial Ownership Declarations, and Financial Statements/Annual Financial Statements via either www.bizportal.gov.za or annualreturns.cipc.co.za.

Our apologies for the delay and any inconvenience caused.

Notice 46 of 2024