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CIPC relief and reporting obligations during COVID-19

April2020 Overview of the relief provided by the CIPC's to businesses under financial distress during the 2020 national lockdown and the reporting obligations of the accountants and auditors of businesses under financial distress.

R 475
Category Practice Management
Accredited SAIBA
CPD Hours 2
Effort 2 Hours
Duration 2 Hours
Format Webinar
Level Moderate
Assessment Yes
Supervised No
Pre-Entry No
Tuition Mandatory
Study Material No

What you will learn

By the end of this event the participant should:  

  • Be aware of the possible consequences of COVID-19 on the continued trading of businesses; 
  • Be aware of the CIPC publications relating to COVID-19; 
  • Know the contents of CIPC’s Practice Note and media releases as a result of COVID-19: 
    • What CIPC’s monitoring responsibilities are. 
    • Which steps CIPC will take at this stage. 
    • Which steps CIPC will not take at this stage. 
    • How to rectify incorrect information submitted. 
  • Be aware of the legal references, i.e. Companies Act, Companies Regulations, etc; and 
  • Be aware of the potential present and future legal consequences arising with insolvencies.  

Study Units

Consequences of the national lockdown on businesses and their ability to trade

Legal Requirements

  • Paragraph 4(1)(b) of the Companies Regulations (GNR 351 of 26 April 2011). 
  • Section 22 of the Companies Act. 
  • Lockdown Regulations. 

Practice Note 1 of 2020

  • Impact of CIPC’s actions on companies and businesses unable to trade

CIPC’s process of cancelling the certificates of companies not designated as essential services

Insolvency considerations

  • Commercial vs Factual insolvency. 
  • The potential legal consequences arising with insolvencies. 
  • Consideration of the solvency and liquidity test in Section 4 of the Companies Act (and making the connection to the evaluation thereof on the new CIPC Compliance Checklist). 
  • Application of Section 22 of the Companies Act on Close Corporations. 
  • Consideration of Section 129 “financially distressed companies”. 
  • Responses to factual insolvency by companies and your consideration thereof, i.e. subordination agreements, letters of support, guarantees, etc. 
  • Reporting on insolvencies – how, when and to whom? 

Requirements

  1. There are no preconditions for this course.  
  2. Moderate level.
  3. Recorded webinar made available on a specified date

Description

Our national lockdown has caused and continues to cause companies and businesses to go into financial distress.  What happens if a company is temporarily insolvent and still carrying on business? 

In their duty to monitor compliance with the Companies Act and Regulations, CIPC would usually see the above as carrying on business recklessly. But now, they have issued a Practice Note that provides relief to businesses in this regard.  Also related to COVID-19 consequences, CIPC will revoke business permits of certain companies that obtained certificates for use during the lockdown period. 

During this webinar we will discuss the above as well as the impact of CIPC’s actions on companies and businesses unable to trade at this stage – taking into account issues relating to insolvency. This is information that every accountant and auditor must be aware of. 

PRICE         

The following pricing apply: 

  • Ad hoc: R475.00  
  • Subscription: N/A

 

DATE

This webinar will be available from April 2020. 

 

PRESENTER

Lettie Janse van Vuuren 

Lettie is a Chartered Accountant, Registered Auditor, as well as an Assessor and Moderator. She joined SA Accounting Academy in November 2017 as Head of Technical. As a professional trainer and webinar host, she is able to hold the attention of an audience with her relaxed and humorous presentation style.  She has a unique ability to communicate with delegates at their respective levels of knowledge and experience.  Over the last 20 years, she has trained thousands of partners, managers, trainee accountants and other professionals.  

She is responsible for researching, compiling and presenting the SAIBA Quick Update Subscription package

WHO SHOULD ATTEND?

  1. Business Accountant (SA).
  2. Business Accountants  in Practice (SA)
  3. Registered auditors. 
  4. Company secretaries.  
  5. Accounting, company secretarial and auditing support staff.    

ADDITIONAL MATERIAL

By attending this webinar, you will be provided with:  

  • Summarised slide presentation. 
  • CIPC documents.
  • Webinar material.
  • Access to a technical knowledge base.
  • Recorded webinar that includes an expert presenter. 

 

WHICH SUBSCRIPTION? 

This event is included in the following subscription packages. If you are not a subscriber, you need to purchase as a stand-alone event. 

  1. Accountant in Practice: No
  2. Accountant in Practice plus tax: No
  3. Bookkeeper: No 
  4. Quickupdate: No
  5. IFRS for SME's: No

 

HOW TO SUBSCRIBE?

Subscribers pay less for their CPD points. SAIBA offers 4 subscription packages that provides access to everything to run a successful accounting and tax practice. Pay a small monthly amount and gain access to monthly webinars covering ethics, financials, reporting, audit and assurance, working papers, law, technology, management topics, and tax. 

Click here to choose your subscription option.