Companies Act 2008 - From CIPRO to CIPC
With effect from 1 May 2011, CIPRO is no more. The new Companies and Intellectual Property Commission has taken over the functions of both the Office of Companies and Intellectual Property Enforcement (OCIPE) and the Companies and Intellectual Property Registration Office (CIPRO).
This independent new organ of state will probably be referred to as the "Companies Commission" or just the "Commission".
From an HOA perspective, its main functions are to:
- Register new non-profit HOA companies
- Keep registers of information on companies
- Keep company law under regular review and make recommendations to the minister for changes
- Promote education and awareness of company law by public education
- Receive complaints about and investigate alleged contraventions of company law
- Promote dispute resolution through the Companies Tribunal
- Promote compliance with and enforce company law
One of the burning questions in regard to non-profit HOA companies was whether or not they will have to render annual returns under the new Act. The fundamental approach of the new Companies Act is that non-profit companies (NPCs) must comply with all the provisions of the Act except where they are specifically exempted from doing so. Just before the new Companies Act came into force, the acting executive officer of CIPRO, Mr Renier du Toit, put out a notice confirming that the Companies Commission will enforce compliance of annual returns by non-profit companies.
As from 1 May 2011, all companies established under section 21 of the previous Companies Act must render annual returns and pay the prescribed fee (set out in Table 2B of Annexure 2 to the Companies Regulations). Managing agents need to prepare to be able to do this for the HOA companies they manage.
Professor Graham Paddock is one of the Course Conveners for the Home Owners' Association Management course (www.paddocks.co.za). The next course is due to start on 8 August 2011. For more information please contact Emma on 021 447 7565 or [email protected].