The consequences of failing to submit the annual returns of a Company / Close Corporation
Category Property News
The consequences of failing to submit the annual returns of a Company / Close Corporation
All companies and close corporations are required by law to submit their annual returns with the Companies and Intellectual Properties Commission (“CIPC”) within 30 days of the anniversary date of its incorporation. Failure to do so will result in the CIPC assuming that such entity is no longer doing business or is not intent on doing business in the near future, which will lead to the deregistration of such entity.
A deregistered entity has no legal capacity to transact and therefore any agreements concluded with or by such an entity may be negatively affected. Fortunately the Act makes provision for “any interested person” to apply to the CIPC to re-instate the registration of the entity. As re-instatement is a lengthy and expensive procedure which will handicap the transferring process, it is important to verify the status of an entity prior to entering into a sale agreement with such an entity with regards to immovable property.
Best regards,
Die gevolge van die versuim om die jaarlikse opgawes van ‘n Maatskappy / Beslote Korporasie in te dien
Alle maatskappye en beslote korporasies is volgens die wet verplig om hul jaarlikse opgawes binne 30 dae vanaf die herdenking van die entiteit se inlywing by die “Company and Intellectual Properties Commission” (“CIPC”) in te dien. Versuim om dit te doen sal daartoe lei dat die CIPC die aanname maak dat sodanige entiteit nie meer handel dryf of die bedoeling het om handel te dryf in die nabye toekoms nie, en sal tot die deregistrasie van sodanige entiteit lei.
‘n Gederegistreerde entiteit het geen regsbevoegdheid om te handel nie, en enige transaksies wat met / deur so entiteit aangegaan word kan nadelig beinvloed word. Gelukkig maak die Wet daarvoor voorsiening dat enige “belanghebbende persoon” by die CIPC aansoek kan doen vir die herinstelling van die entiteit. Aangesien die herinstelling van so ‘n entiteit ‘n tydsame en duursame prosedure is, wat die oordragsproses sal kniehalter, is dit belangrik om die status van ‘n entiteit te verifieer alvorens ‘n koopkontrak met betrekking tot onroerende eiendom met so ‘n entiteit aangegaan word.
Vriendelike groete,
Author: Apple Property
