CIPRO Report Update

Dear Member

MEETING WITH THE CIPRO

The following is a summary of the main items discussed at a meeting between representatives from various bodies, including SAICA, and the Acting Registrars of Companies and of Close Corporations and their senior staff on 3 December 2004. Please note that the information disclosed could have changed since the meeting held on 03 December 2004 and that if there is a specific item which you require clarity on you would need to contact CIPRO.


1. Acting CEO of CIPRO

Representatives at the meeting were introduced to Ms Yolisa Maya, the acting CEO of CIPRO. Ms Maya acknowledged the problems that existed at CIPRO and in particular the problems with the CIPRO call centre.

Representatives at the meeting were encouraged by Ms Maya's positive and constructive attitude and wished her success.

It was noted that Messrs Silas Modiba and Joey Mathekga continued to be the Acting Registrars of Companies and of Close Corporations.


2. Annual returns

CIPRO stated that the planned date of February 2005 for the introduction of annual returns for private companies may be reconsidered.

CIPRO agreed to further consider the suggestion that practitioners be given the ability to lodge numerous annual returns on behalf of clients.

With regard to the due date for the lodging of annual returns CIPRO stated that they would issue a reminder to the registered address one month prior to the due date i.e. the anniversary date of incorporation. It was suggested to CIPRO that such notices or copies thereof should be sent to the auditors of the company to ensure that the annual returns are completed on time.

CIPRO confirmed that external section 21 companies are exempt from the annual fee if they can show that their overseas activities are also not for profit.


3. Processing times

Companies:

CIPRO was currently experiencing certain IT problems and was unable to print documents that had been processed.

A concern was expressed that certain agents seemed to be getting preferential treatment and it was greed that details would be provided so that this issue could be investigated.

Close Corporations

CK1s	15 to 18 days

It was noted that in 2003 there had been 110 000 new CCs and that so far this year there were already 123 000.

It was noted that the proposed e-lodgement system had again been delayed and was now scheduled for January 2005

CK2s	10 to 15 days
CK4s	1 to 5 days
CK6s	no backlog
CK7s	8 days

Concerns were expressed at the IT failures that were causing some of the delays.


4. CM5 and CK7 forms rejected

CIPRO confirmed that they would bring the legislation and processes in line so that if either a CM5 or CK7 is rejected there would be no refund of the fee and a new application would have to be made. If forms are rejected because of queries then these would be dealt with on an ad hoc basis.


5. Information technology

CIPRO staff stated that they continued to experience significant problems with regard to the IT systems and that these problems were impacting on their ability to deliver the required service.


6. New building

CIPRO stated that one of the problems with the processes in the new building related to the collection of processed forms and that many forms were being collected by the wrong people. CIPRO would look at how best to resolve this problem including providing tables or desks at which documentation could be checked.


7. SARS/CIPRO link

This link was still not working.


8. Information accessed by banks

It was stated that banks often accessed information that was out of date. It was suggested by CIRPO that this could be because they purchased data from suppliers that was not always up to date rather than accessing the information directly on the CIPRO website. CIPRO will engage with banks further regarding this issue.


9. Next meeting

The next meeting would be held on 3 March 2005.



[14 February 2005]