The Companies and Intellectual Property Commission (CIPC) has issued a notice addressing the growing number of complaints from registered businesses that their CIPC documents are not being accepted by other institutions. The notice reiterates that the Companies Act allows for the use of electronically generated reproductions of original documentation and announces the organization’s move towards a fully automated and paperless system.
The CIPC, a South African government agency responsible for the registration and maintenance of companies and intellectual property, has been receiving an increasing number of complaints from registered businesses. These businesses claim that their CIPC documents, such as web disclosures, confirmation letters, and registration certificates, are not always accepted by other institutions when presented.
In response to these complaints, the CIPC has reminded businesses and institutions of Section 6(7) of the Companies Act, which states:
“(7) An unaltered electronically or mechanically generated reproduction of any document, other than a share certificate, may be substituted for the original for any purpose for which the original could be used in terms of this Act, if that reproduction satisfies any applicable prescribed requirements as to the form or manner of reproduction.”
This statement clarifies that electronically generated reproductions of original documentation held in electronic format are legally valid and should be accepted by institutions.
Furthermore, the CIPC has announced its intention to move away from paper-based systems and fully automate all CIPC processes. Electronic disclosure certificates issued by the CIPC, containing registration information and more, can be used by accountable institutions to establish and confirm company and close corporation information. This information can be verified by accessing the CIPC website and electronic processing platforms.
The CIPC offers full disclosure certificates through its website, www.cipc.co.za, for a fee of R30 (thirty rand only). These certificates provide requestors with complete details of the company or close corporation governance structure, as well as the history of the entity. The disclosure certificates offer assurance to institutions and individual CIPC customers that the certificates presented are authentic, while also confirming and verifying entity information against CIPC records.
To further assist businesses and institutions, step-by-step guides are available on the CIPC website, detailing the process to request a free (shortened) or full (official use) disclosure.
In the notice, Adv. R.W. Voller, the Commissioner of the CIPC, reiterates the legal validity of electronically generated CIPC documents and encourages institutions to accept them in accordance with the Companies Act. The move towards a paperless and fully automated system aims to improve efficiency, reduce errors, and streamline CIPC processes, benefiting both businesses and institutions.
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