No approval of company actions and documentation required by the Companies and Intellectual Property Commission (CIPC) any longer.
The Companies Act 71 of 2008 specifically reduces the company’s reliance on the regulator, the
Companies and Intellectual Property Commission (“CIPC”). Although companies still have to comply with an administrative process to inform the CIPC of its decisions (for example the appointment of directors, changing of auditors, change of year end, amendment of the Memorandum of Incorporation), none of these decisions are dependent on the approval of the CIPC. In most instances, the company’s decision is effective immediately and it merely needs to inform the CIPC of decisions or actions.
1.1 Appointment of directors
In terms of section 66(7) of the Companies Act 71 of 2008:
“A person becomes entitled to serve as a director of a company when that person:
a. has been appointed or elected in accordance with this Part, or holds an office, title, designation or similar status entitling that person to be an ex officio director of the company; and
b. has delivered to the company a written consent to serve as its director.”
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