The Companies and Intellectual Property Commission (CIPC) previously announced that it is a mandatory requirement for all companies to submit a Compliance Checklist together with their Annual Return as of 1 January 2020. The checklist enables companies to declare their compliance status to specific sections of the Companies Act. CIPC will utilise the Checklist to monitor and regulate proper compliance with the Companies Act and if trends of non-compliance appear, to act accordingly.
Following the announcement of the Compliance Checklist, the CIPC published a media release on 4 February 2020 stating that it has come to the CIPC’s attention that there is confusion and misinformation with regard to the functionality of the Checklist and the applicability thereof in terms of CIPC’s mandate to monitor and enforce proper compliance with the Companies Act. The media release further states that the CIPC has introduced a Compliance Checklist service for companies to use as an educational and guidance tool regarding duties and responsibilities imposed in terms of the Companies Act.
The CIPC states that the Compliance Checklist is a useful tool in the corporate governance and compliance framework of each company and the completion of the checklist will ensure that the CIPC is equipped with reliable information for monitoring compliance of companies with the Companies Act.
The media statement also stated that the CIPC will be hosting webinars and Educational sessions on the Compliance Checklist in order to ensure that assistance is given to companies in this regard.