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Thread: New companies act - effective 01 May 2011?

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    New companies act - effective 01 May 2011?

    Has the new companies act legislation finally come into being? I haven't seen anything in the news, but maybe I missed it.

    My biggest query will be whether I still need to have my Feb 2011 accounts for our Ptys audited. I would love not to have that expense.

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    Email problem Johann D Landsberg's Avatar
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    Yes, it seems that the new companies act came into effect on 1 May 2011. You can look at the following articles: http://www.businessday.co.za/article...aspx?id=138690 or http://www.michalsons.co.za/companie...FQlspAod6UPlpA and http://www.iol.co.za/business/busine...-era-1.1059725.

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    BusFact (03-May-11)

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by BusFact View Post
    My biggest query will be whether I still need to have my Feb 2011 accounts for our Ptys audited.
    My expectation was that because the EOFY fell before the introduction of the new Act, we're stuck working with the old "rules" for that financial year. But now you've got me wondering too.

    Reading those links Johann posted, I've also got a sneaking suspicion that in my case the company articles require an audit.
    The trouble with opportunity is it normally comes dressed up as work.

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    Quote Originally Posted by Johann D Landsberg View Post
    Yes, it seems that the new companies act came into effect on 1 May 2011. You can look at the following articles: http://www.businessday.co.za/article...aspx?id=138690 or http://www.michalsons.co.za/companie...FQlspAod6UPlpA and http://www.iol.co.za/business/busine...-era-1.1059725.
    Reading those articles, they are all about the [bold] expected [/bold] implementation of the act, but nothing refers to it already having come into force. The one article is dated 20 April and the other is dated 31/3 and refers to the previous implementation date of 1st April - which never happened, but was instead postponed.

    I would have thought something like this would be fairly big news - either a further delay or an eventual implementation.

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    Site Caretaker Dave A's Avatar
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    I noticed the dates of the articles too, but it was the point in one of them that the company articles might need amending that struck me when it comes to the audit issue. Is there an annual audit requirement per your company articles?
    The trouble with opportunity is it normally comes dressed up as work.

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    Our company articles are hidden under a pile of other documentation and haven't been disturbed in over a decade, possibly two. I remember them as looking like they were 5th generation photocopies. They are most likely the standard format dished out in the 80's. I know I'm not being strictly by the book here, but they are not a major concern for me. My understanding is that the articles protect the shareholders by giving a set of rules to the directors. When these are the same people, it is of less importance.

    If my articles say I have to have an audit, I can ignore them for now. If someone complains about it in the future I can pass a resolution to change the instruction. However if SARS or the DTI say I have to have an audit, then that is far more difficult to ignore and I have to reluctantly pay a small fortune for the privledge of making photocopies and receiving complicated looking financial documents with several pages of cover letters that no one ever reads.

    My situation is quite informal with no 3rd party investors so I think its not necessary to follow too much protocol. If there are multiple shareholders, then that would change things - IMHO.

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    Platinum Member sterne.law@gmail.com's Avatar
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    The Companys Act is in operation.
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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    Junior Member RogerH's Avatar
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    Hi, the new Companies Act is in operation, CIPRO is now the CIPC (Companies and Intellectual Property Commission) (www.cipc.co.za). I think the reason it "slipped" in so quietly was that South Africa was on "yet another" holiday on Monday May 2...

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    Quote Originally Posted by BusFact View Post
    My biggest query will be whether I still need to have my Feb 2011 accounts for our Ptys audited. I would love not to have that expense.
    I've checked with my auditors. Apparently all EOFYs before 1 May 2011 that had to be audited under the old act will still have to be audited. Any end of financial year falling on or after 1st May 2011 will be governed by the requirements of the new act.

    I tried. I argued. But apparently it's official
    The trouble with opportunity is it normally comes dressed up as work.

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    I got the same answer from my auditors, but I hardly see them as an impartial source, and they didn't exactly point me to the exact part in the Act.

    It just seems so pointless now. Nobody is even going to look at them for more than 5 minutes.

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