SA companies must complete compliance checklist
The new Companies and Intellectual Property Commission (CIPC) compliance checklist, which came into effect on 1 January 2020, requires all companies (except CCs) to complete a 24-question compliance list along with their annual returns.
Companies are required to indicate if they complied with a particular section during the previous calendar year but only allows for yes/no answers and makes no provision for explained responses.
Failure to complete the checklist includes heavy penalties, including the possibility of up to 12 months in jail.
The CIPC told Business Tech that the purpose of the checklist is to:
- To ensure compliance with the mandatory requirements of the Companies Act;
- To serve as an educational tool for directors and company secretaries, in guiding them with regards to their responsibilities in terms of the Companies Act;
- To utilise the checklist to monitor and regulate proper compliance with the Companies Act and, if trends of non-compliance appear, to act accordingly.
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