CIPC Notice 44 of 2024: Rejection of BRP license renewal applications pending the filing of status reports
Published: 9 July 2024
The Companies and Intellectual Property Commission (CIPC) emphasizes the importance of compliance with the Companies Act 71 of 2008, specifically regarding the responsibilities of business rescue practitioners.
Many practitioners are not adhering to Section 132(3)(a)-(b) of the Act, which mandates the submission of monthly progress reports for ongoing business rescue proceedings. These reports must be prepared if the proceedings extend beyond three months and updated monthly until the proceedings conclude. Reports must be delivered to affected parties and either the court (if court-ordered) or the CIPC.
To enforce compliance, the CIPC will reject practitioner license renewal applications until all required status reports are filed and up to date. Practitioners must ensure they submit and update these reports monthly as per the Act.
CIPC Notice 44
The Companies and Intellectual Property Commission (CIPC) emphasizes the importance of compliance with the Companies Act 71 of 2008, specifically regarding the responsibilities of business rescue practitioners.
Many practitioners are not adhering to Section 132(3)(a)-(b) of the Act, which mandates the submission of monthly progress reports for ongoing business rescue proceedings. These reports must be prepared if the proceedings extend beyond three months and updated monthly until the proceedings conclude. Reports must be delivered to affected parties and either the court (if court-ordered) or the CIPC.
To enforce compliance, the CIPC will reject practitioner license renewal applications until all required status reports are filed and up to date. Practitioners must ensure they submit and update these reports monthly as per the Act.
CIPC Notice 44
Updated on: 23/07/2024
Thank you!