The Company Act: Keeping Accurate Records

Corporate governance and business administration are more important than ever with the laws and regulations being implemented to combat corruption and promote good, responsible business. When it comes to company compliance checklists in South Africa, keeping your records straight is vital to being compliant. The following are some of the records you need to have in order.

1. Company Records

One of the primary requirements of the Companies Act is that all companies must have well-maintained, accurate company records. The documentation included in the required company records includes:

  • Memorandum of Incorporation (MOI).
  • Register of shares
  • Register of certain appointments (e.g. company secretary and auditor)
  • A record of all directors.
  • Copies of annual general meeting reports.
  • Annual financial statements
  • Accounting records
  • Notices and minutes of annual general meeting
  • Copies of written communication sent to shareholders by the company

2. Accounting Records

All companies, according to business compliance in South Africa in terms of the Companies Act (Section 28), must keep accurate, accessible accounting records at their registered offices. These records include all the necessary information for the preparation of financial statements, in the prescribed format.

3. Annual Returns

According to the Companies Act and Close Corporations Act, companies are required to lodge their annual returns with the CIPC (Companies and Intellectual Property Commission) within a set period every year (the exact dates are subject to change year by year). These returns must be completed online and no later than 30 days past the due date, otherwise the company may be deregistered and effectively cease to exist as a business entity.

4. Financial Statements

On the date that the annual returns are due, the company’s most up-to-date, approved Audited Financial Statements must be filed with the CIPC. All financial statements must be completed and formatted in a way which is compliant with the Financial Reporting Standards.

What is your best option for assuring compliance?

To ensure impartial, professional and reliable assistance in your business’s compliance with South African law the best option is to acquire the services of an expert. Legal compliance experts like SERR Synergy make it their business to know the ins and outs of these reports and Acts and all the important details surrounding them. What better assistance could you ask for?