The Companies Act, No 71 of 2008, requires all companies (including close corporations) in South Africa to file annual returns and pay the requisite fee with the CIPC in the anniversary month of that company. The return has to be completed with certain compulsory information, such as turnover. Qualifying entities have to submit their annual financial statements together with the annual return.
In the event that a company is not required to submit annual financial statements with the annual return, or (if permitted) elect not to submit their annual financial statements with the annual return, the company is obliged to complete and submit a COR30.2 Financial Accountability Supplement. This supplement requires the company to declare the following information to the CIPC:
- The name of the person primarily responsible for recording the day to day financial transactions and maintaining the company’s financial records.
- The name of the person primarily responsible for compiling the financial information and preparing reports and statements for the company.
- The person who provides advice to the company concerning the maintenance of financial records.
- The name of the person performing the independent review of the annual financial statements.
- Indicate how the company maintains its financial records – manually in paper based records, or electronically.
- Indicate how the company prepares bank reconciliations, balance sheets and income and expense statements.
- If the company deals in goods, with what frequency it carries out stock takes.
- If the company holds any assets in fiduciary capacity for persons not related to the company, as contemplated in Regulation 28(2/(b).
It is important to realise that the company’s directors are responsible for making this declaration to the CIPC, even in the event that an authorised person or firm is mandated to submit the COR30.2 on the company’s behalf. Directors will be held liable in the event of them making or sanctioning incorrect declarations to the CIPC.