Source: http://docplayer.net/1968676-Steering-point-audit-and-accounting-requirements-of-the-new-companies-act-companies-act-series-2.html
Timestamp: 2017-06-29 08:18:08
Document Index: 158582160

Matched Legal Cases: ['ART 6', 'art 17', 'art 1', 'ART 1', 'ART 2', 'art 1', 'art 2', 'art 1', 'art 9', 'art 9', 'art 9', 'art 9', 'art 9', 'art 9', 'art 1', 'ART 16', 'art 10', 'art 10', 'art 10', 'art 1', 'art 2']

Steering Point. Audit and accounting requirements of the new Companies Act. Companies Act series #2 - PDF
Download "Steering Point. Audit and accounting requirements of the new Companies Act. Companies Act series #2"
1 Audit and accounting requirements of the new Companies Act An overview of relevant aspects of the Companies Act, No.71 of 2008, and matters to consider regarding its implementation. July 2011 In this issue: Determining the category of your company Considering the impact on close corporations Financial year of the company Accounting records Requirements for financial statements including annual financial statements Compiling the financial statements Prescribed financial reporting standards The requirement to be audited or independently reviewed Reportable irregularities Annual returns Enhanced accountability Requirements for auditors Audit committees: appointment, membership and qualifications Functions of the audit committee Resolution of disputes and clarification of doubts Required disclosures in the financial statements Comparison between the Companies Act, 2008, the King Report on Governance 2009 (King III) and the JSE Limited Listings Requirements regarding interim financial statements and summarised information How PwC can help you Steering Point Companies Act series #22 The information contained in this publication is published by PricewaterhouseCoopers (PwC) and is provided for discussion purposes only. As such, it is intended to provide the reader or his/her entity with general information of interest. The information is supplied as is and has not been compiled to meet the reader s or his/her entity s individual requirements. It is the reader s responsibility to satisfy himself or herself that the content meets the individual or his/ her entity s requirements. The information should not be regarded as professional or legal advice or the official opinion of PwC. No action should be taken on the strength of the information without obtaining professional advice. Although PwC takes all reasonable steps to ensure the quality and accuracy of the information, accuracy is not guaranteed. PwC, shall not be liable for any damage, loss or liability of any nature incurred directly or indirectly by whomever and resulting from any cause in connection with the information contained herein.3 Introduction The Companies Act No. 71 of 2008 (the Act), including amendments effected by the Companies Amendment Act, 2011 (the Amendment Act), and the Companies Regulations, 2011 (the Regulations) came into effect on 1 May The Act introduces a multitude of requirements for companies in the areas of auditing and accounting. While the Companies Act No. 61 of 1973 (the old Act) required all companies to be audited, the new Act introduces less onerous assurance requirements for certain companies based on factors such as the category of the company and whether an audit of the company would be in the public interest. There has been significant debate in the media about these amended audit requirements as well as the Act s introduction of an independent review for companies not requiring an audit. In the current edition of this series, we discuss the implications of selected sections to assist directors and management of companies to get to grips with the auditing and accounting requirements of the Act. PwC 14 Determining the category of your company 1 The different types of companies that may be formed in terms of the Act, are illustrated below. The Act introduces two main categories of companies, namely, profit and non-profit companies, effectively doing away with the concepts of widely held and limited interest companies introduced by the Corporate Laws Amendment Act, 2006 (the CLAA). It further provides for four subcategories of profit companies, namely state-owned, private, personal liability and public companies. Determining the category of your company is the initial step in establishing whether the requirement to be audited or independently reviewed will apply. This will also have a bearing on the financial reporting standards applicable to the company, as discussed later in this publication. Each company, including any company which is a subsidiary, will need to determine its category in accordance with the Act. This represents a departure from the requirements of the CLAA, which automatically classified subsidiaries of widely held companies as widely held. 1 See Sections 1 and 8 of the Act 2 Audit and accounting requirements of the new Companies Act Steering Point No: 25 Considering the impact on close corporations 2 After 1 May 2011, no further registrations of close corporations are possible, but existing close corporations may convert to companies by filing, amongst other required documents, a notice of conversion. Conversion is, however, not compulsory and close corporations will continue to exist until deregistration or dissolution in terms of the Close Corporations Act, Close corporations will be treated as private companies for selected sections of the Act, such as when determining whether the company is required to be audited or independently reviewed and the applicable financial reporting standards. Schedule 3 to the Act sets out the specific sections of the Close Corporations Act, 1984 that are repealed by the new Companies Act, as well as the sections which continue to apply. Financial year of the company 3 A company s financial year is its annual accounting period and it ends on the date set out in the company s notice of incorporation. The first financial year of a company and any financial year in which the board of a company decides to change the company s financial year end, may be a period longer than 12 months, but may not be more than 15 months in duration. 2 See Schedule 3 of the Act 3 See Section 27 of the Act PwC 36 Accounting records 4 The Act defines accounting records to be information in written or electronic form concerning the financial affairs of a company, including but not limited to, purchase and sales records, general and subsidiary ledgers and other documents and books used in the preparation of financial statements. All companies are required to keep accurate and complete accounting records, in one of the official languages of the Republic. These records must be kept at, or be accessible from, the registered office of the company. A company must maintain such accounting records as are necessary to enable it to prepare financial statements as required by the Act, or any other law. Such records must include any prescribed accounting records which must be kept in the prescribed manner and form. The Regulations prescribe that a company must keep accounting records which are necessary to provide an adequate information base, sufficient to enable the company to satisfy all applicable reporting requirements. These records must allow for the proper conduct of an audit or independent review, as applicable. The Regulations also prescribe, that to the extent necessary for a particular company to comply with its obligations to maintain adequate records in terms of the Act, the accounting records of a company must include those outlined below. A record of the company s assets and liabilities including, but not limited to: A record of the company s non-current assets, showing for each such asset or, in the case of a group of relatively minor assets, each such group of assets The date the company acquired it, and the acquisition cost; The date the company re-valued it, if applicable, and the amount of the revaluation and, if it was re-valued after the Act took effect, the basis of, and reason for, the re-valuation; and The date the company disposed of or retired it, once it has been disposed of or retired, and the value of the consideration, if any, received for it and, if it was disposed of after the Act took effect, the name of the person to whom it was transferred; A record of any loan by the company to a shareholder, director, prescribed officer or employee of the company, or to a person related to any of them, including the amount borrowed, the interest rate, the terms of repayment, and material details of any breach, default or re-negotiation of any such loan; and A record of any liabilities and obligations of the company including, but not limited to A record of any loan to the company from a shareholder, director, prescribed officer or employee of the company, or from a person related to any of them, including the amount borrowed, the interest rate, and the terms of re-payment, and material details of any breach, default or re-negotiation of any such loan; and A record of any guarantee, suretyship or indemnity granted by the company in respect of an obligation to a third party incurred by a shareholder, director, prescribed officer or employee of the company, or by a person related to any of them, including the amount secured, the interest rate, the terms of repayment, the expiry date and the circumstances in which the company may be called upon to honour the guarantee, suretyship or indemnity. A record of any property held by the company: In a fiduciary capacity, or In any capacity or manner contemplated in Section 65 (2) of the Consumer Protection Act, 2008 (Act No. 68 of 2008). A record of the company s revenue and expenditures, including: Daily records of all money received and paid out, in sufficient detail to enable the nature of the transactions and, except in the case of cash transactions, the names of the parties to the transactions to be identified; Daily records of all goods purchased or sold on credit, and services received or rendered on credit, in sufficient detail to enable the nature of those goods or services and the parties to the transactions to be identified; and Statements of every account maintained in a financial institution in the name of the company, or in any name under which the company carries on its activities, together with vouchers or other supporting documents for all transactions recorded on any such statement. A record of the company s inventory and stock in trade: If the company trades in goods, a record of inventory and stock in trade, statements of the annual stocktaking, and records to enable the value of stock at the end of the financial year to be determined. Application to non-profit companies: In addition to the requirements set out above, a non-profit company must maintain adequate records of all revenue received from donations, grants, and members fees, or in terms of any funding contracts or arrangements with any party. 4 See Sections 1, 24 and 28 read with the transitional arrangements in Schedule 5 of the Act 4 Audit and accounting requirements of the new Companies Act Steering Point No: 27 Required accounting records must be maintained by the company for the current financial year and for the previous seven completed financial years of the company. There may be instances in which the Act introduces retention periods for pre-existing companies (i.e. companies which existed on the effective date of the Act) which did not previously apply. To address this, the transitional provisions in Schedule 5 provide that a pre-existing company will not be in contravention of the Act where it fails to maintain the required records for the seven-year period if the company disposed of that record before the effective date and at the time of disposal, it was not required to continue to maintain that record in terms of any public regulation. The Act provides that it is an offence for a company, with an intention to deceive or mislead any person, to fail to keep accurate or complete accounting records or to keep records other than in the prescribed manner or form. It is an offence for a company, or a person, to falsify accounting records. Requirements for financial statements including the annual financial statements 5 The Act defines a financial statement as including: The annual financial statements and provisional annual financial statements; Interim or preliminary reports; Group and consolidated financial statements in the case of a group of companies; and Financial information in a circular, prospectus or provisional announcement of results, that an actual or prospective creditor or holder of the company s securities, or the Commission, Panel or other regulatory authority, may reasonably be expected to rely on. If a company provides any financial statements to any person for any reason, those statements must satisfy any prescribed financial reporting standards as to form and content (prescribed financial reporting standards are discussed later in this publication). Such financial statements must present fairly the state of affairs and business of the company, and explain the transactions and financial position. A company is required to prepare its annual financial statements within six months after the end of its financial year, or such shorter period as may be appropriate to provide the required notice of an annual general meeting. This notice must include the financial statements to be presented or a summarised form thereof. The Act does not require the annual financial statements to be distributed to each shareholder. It states, however, that in addition to the rights permitting access to company records, a person who holds or has a beneficial interest in any securities issued by a company is entitled: Without demand to receive a notice of the publication of any annual financial statements of the company required by this Act, setting out the steps required to obtain a copy of those statements; and On demand to receive without charge one copy of any annual financial statements of the company required by this Act. The annual financial statements must be approved by the board and signed by an authorised director and must be presented to the first shareholder s meeting after such approval. The Act further provides that a person will be guilty of an offence if that person is a party to the preparation, approval, dissemination or publication of any financial statements that fail in a material way to comply with certain requirements in the Act or are materially false or misleading. This offence is subject to Section 214(2) False statements, reckless conduct and non-compliance. The Act specifies disclosures that a company s financial statements must include. These disclosure requirements are outlined in Appendix A. Schedule 4 of the old Act contained an extensive list of disclosure requirements for statutory financial statements. However, the new Act is not as prescriptive and does not contain an equivalent schedule. It is interesting to note that the Act introduces the requirement to disclose directors emoluments per director and individual holding any prescribed office in the company. This requirement is applicable in the annual financial statements of each company that is required to be audited in terms of the Act or the Regulations. While the Act is applied prospectively, and such disclosure will be required in annual financial statements for financial years ending after 1 May 2011, the requirement for the annual financial statements to comply with prescribed financial reporting standards will mean that comparative emolument disclosure will be required in these financial statements. Such comparative information must be presented to comply with International Accounting Standard 1 Presentation of financial statements paragraph 38 which stipulates that an entity shall disclose comparative information in respect of the previous period for all amounts reported in the current period s financial statements. An entity shall include comparative information for narrative and descriptive information when it is relevant to an understanding of the current period s financial statements. 5 See Sections 1, 29, 30, 31 and 214 read with transitional arrangements in Schedule 5 of the Act PwC 58 Group financial statements The old Act placed an obligation on the company to prepare group financial statements. The new Act makes no specific reference to a requirement to prepare group financial statements, but rather requires a company s financial statements, to satisfy any prescribed financial reporting standards as to form and content. For example, a company with subsidiaries, which is required to comply with International Financial Reporting Standards, would be required to prepare consolidated financial statements that comply with the requirements of that standard. There has been a further shift in the application of the requirement to prepare statutory financial statements in a group situation. The old Act provided an exemption from the preparation of group financial statements for a company which had subsidiaries, and which itself was a wholly owned subsidiary of another company incorporated in the Republic. The new Act does not provide such exemption. Similarly, the exemption from the preparation of a director s report for wholly owned subsidiaries, in terms of the old Act, has not been retained. Companies reporting in terms of IFRS International Accounting Standard (IAS) 27 Consolidated and separate financial statements may qualify for an exemption from the preparation of consolidated financial statements where they satisfy the criteria for exemption in terms of Paragraph 10 of that standard. Companies should review their eligibility for this exemption in terms of that standard. Interim financial statements and summarised information The requirement for the preparation of interim or provisional financial statements for a widely held company has not been retained in the Act, despite the fact that the definition of financial statements includes interim, provisional and preliminary financial statements. Transitional arrangements Schedule 5 clarifies the applicability of the new Act to a previous year s annual financial statements and requires that if immediately before the effective date of the Act, a particular pre-existing company has passed its financial year end but has not completed the requirements in terms of the old Act for publishing, audit and approval of its annual financial statements for that financial year: The provisions of the old Act continue to apply with respect to the publishing, audit and approval of those statements; and The provisions of the new Act will apply to each subsequent financial year end and annual financial statements of that company. A comparison between the Act, the King Report on Governance of 2009 (King III) and the JSE Limited Listings Requirements as applicable to interim financial statements and summarised information is presented in Appendix B. Compiling the financial statements 6 A company s financial statements may be compiled internally or independently. Annual financial statements will be considered to be independently compiled and reported when they are prepared by an independent accounting professional on the basis of financial records provided by the company, and they are compiled in accordance with any relevant financial reporting standards (prescribed financial reporting standards are discussed later in this publication). In all other cases, a company s annual financial statements will be considered to be compiled internally. Whether a company elects to internally compile its annual financial statements or to engage an independent accounting professional to perform this service will have an impact on whether such company is required to be audited or independently reviewed, as discussed later in this publication. Definition: Independent accounting professional An independent accounting professional, when used with respect to any particular company, means a person who is: A registered auditor in terms of the Auditing Profession Act, 2005; A member in good standing of a professional body that has been accredited in terms of Section 33 of the Auditing Profession Act, 2005; or Qualified to be appointed as an accounting officer of a close corporation in terms of Section 60 (1), (2) and (4) of the Close Corporations Act, 1984; And such person meets the independence criteria described below if the person: Does not have a personal financial interest in the company or a related or inter-related company; and Is not involved in the day-to-day management of the company s business, nor has been so involved at any time during the previous three financial years; or Is not a prescribed officer, or full-time executive employee of the company or another related or inter-related company, or have been such an officer or employee at any time during the previous three financial years; and Is not related to any person who falls within the independence criteria described above (the terms related and inter-related are defined in Section 2 of the Act). 6 See Regulation 26 6 Audit and accounting requirements of the new Companies Act Steering Point No: 29 Prescribed financial reporting standards 7 The Act requires that any financial statements prepared by a company must satisfy financial reporting standards, if such standards are prescribed. The Minister of Trade and Industry has prescribed financial reporting standards in the Regulations. The Act provides that the Minister must establish a Financial Reporting Standards Council who will, amongst other functions, advise the Minister on matters relating to financial reporting standards. The financial reporting standards applicable to a company are now determined in the Regulations and are based on the category of the company, and for certain categories of companies, on its public interest score. Determining the public interest score For the purposes of determining the financial reporting standards applicable to a company, whether certain categories of companies will be required to be audited or independently reviewed and whether such companies are required to appoint a social and ethics committee, the Regulations require every company to calculate its public interest score at the end of each financial year. Every company must also disclose this score on its annual return, which means that the calculation of the public interest score is relevant to all companies, including public and state-owned companies. The public interest score of a company will be calculated as the sum of the following: Example Element Illustrative Data Points Points equal to the average number of employees of the company during the financial year. One point for every R1 million (or portion thereof) in third-party liability of the company at the financial year end. 100 employees on average 100 R One point for every R1 million (or portion thereof) in turnover during the financial year. R One point for every individual who, at the end of the financial year, is known by the company: 40 individuals 40 In the case of a profit company, to directly or indirectly have a beneficial interest in any of the company s issued securities; or In the case of a non-profit company, to be a member of the company or a member of an association that is a member of the company. Total 440 The Regulations define the term employee as having the meaning set out in the Labour Relations Act, The Labour Relations Act, in turn, defines an employee as meaning: Any person, excluding an independent contractor, who works for another person or for the State and who receives, or is entitled to receive, any remuneration; and Any other person who in any manner assists in carrying on or conducting the business of an employer. Section 200A of the Labour Relations Act further elaborates on the meaning of the term employee. The Regulations do not define the terms turnover and third-party liability for the purposes of this computation. While Regulation 164 does define turnover, it expressly states that this definition is solely for the purpose of calculating administrative fines, in terms of Section 175. The public interest score computation refers to the term beneficial interest, which is a defined term in the Act. When used in relation to a company s securities, this term means the right or entitlement of a person, through ownership, agreement, relationship or otherwise, alone or together with another person to: Receive or participate in any distribution in respect of the company s securities; Exercise or cause to be exercised, in the ordinary course, any or all of the rights attaching to the company s securities; or Dispose or direct the disposition of the company s securities, or any part of a distribution in respect of the securities, but does not include any interest held by a person in a unit trust or collective investment scheme in terms of the Collective Investment Schemes Act, Section 56 of the Act deals further with the concept of beneficial interest, including beneficial interests held via a nominee on behalf of a person. 7 See Sections 1, 56, 203 and 204 of the Act read with Regulations 26 and 27 PwC 710 Summary of the prescribed financial reporting standards The table below summarises the financial reporting standards applicable to the various categories of companies: Category of company Prescribed financial reporting standard IFRS IFRS for SMEs SA GAAP Public companies listed on an exchange X Public companies not listed on an exchange X X State-owned companies X (In the case of any conflict with any requirement in terms of the Public Finance Management Act, 1999 (PFMA), the PFMA prevails) Non-profit companies incorporated: X Directly or indirectly by the state, an organ of state, a state-owned company, an international entity, a foreign state entity or a foreign company; or Primarily to perform a statutory or regulatory function in terms of any legislation, or to carry out a public function at the direct or indirect initiation or direction of an organ of the state, a state-owned company, an international entity, or a foreign state entity, or for a purpose ancillary to any such function. (In the case of any conflict with any requirement in terms of the PFMA, the PFMA prevails) Other companies (profit and non-profit) whose public interest score is at least 350 X X Other companies (profit and non-profit) whose public interest score is at least 100 but less than 350 and whose financial statements are either internally or independently compiled Other companies (profit and non-profit) whose public interest score is less than 100 and whose financial statements are independently compiled Other companies (profit and non-profit) whose public interest score is less than 100 and whose financial statements are internally compiled X X X X X X The financial reporting standard as determined by the company for as long as no financial reporting standard is prescribed. The Accounting Practice Board (APB) recently issued a communication reflecting its decision to assess the need for SA GAAP in its current form in light of the Regulations. It is considering whether it is appropriate and/or necessary to continue issuing IFRS as SA GAAP given the changes to the Act. The APB also alerted companies presently using SA GAAP that they might not be able to continue using this standard in the future, even if SA GAAP is not discontinued. In the interim, it is important to note that companies currently applying SA GAAP need to start considering their public interest score and, depending thereon, which financial reporting framework they are permitted and wish to apply. SA GAAP is a replica of IFRS, but does not require the application of IFRS l(ac 138) First-time Adoption of lnternational Financial Reporting Standards. Thus, these entities need to start thinking about the implications of converting to IFRS, or IFRS for SMEs (if within the scope), once SA GAAP is no longer available for use, and the impact of first-time adoption of either of these frameworks. Definitions: Financial reporting standards Regulation 26 provides the following definitions: IFRS means the International Financial Reporting Standards as adopted from time to time by the International Accounting Standards Board or its successor body; IFRS for SMEs means the International Financial Reporting Standards for Small and Medium Enterprises, as adopted from time to time by the International Accounting Standards Board or its successor body. (This standard may only be applied provided that the company meets the scoping requirements outlined in the IFRS for SMEs); and SA GAAP means the South African Statements of Generally Accepted Accounting Practice, as adopted from time to time by the Accounting Practices Board or its successor body. Effective date The Financial Reporting Standards prescribed in the Regulations apply to every company with a financial year end starting on or after the effective date of the Act, namely for financial years starting on or after 1 May Audit and accounting requirements of the new Companies Act Steering Point No: 211 PwC 912 The requirement to be audited or independently reviewed 8 Companies that require an audit Section 90 of the Act requires a public or state-owned company, upon its incorporation, and each year at its annual general meeting, to appoint an auditor. All public and state-owned companies are thus required to be audited. The Regulations provide that in addition to public and state-owned companies, where the audit of any other company is desirable in the public interest as indicated by prescribed criteria in any particular financial year, those annual financial statements must be audited. The prescribed criteria indicating that an audit is required are as follows: In the ordinary course of its primary activities, a profit or non-profit company holds assets in a fiduciary capacity for persons who are not related to the company, and the aggregate value of such assets held at any time during the financial year exceeds R5 million; A non-profit company which was incorporated: Directly or indirectly by the state, an organ of state, a state-owned company, an international entity, a foreign state entity or a foreign company; or Primarily to perform a statutory or regulatory function in terms of any legislation, or to carry out a public function at the direct or indirect initiation or direction of an organ of the state, a state-owned company, an international entity, or a foreign state entity, or for a purpose ancillary to any such function; Any other company whose public interest score in that financial year is 350 or more; or Any other company whose public interest score in that financial year is at least 100 (but less than 350) and whose annual financial statements for that year were internally compiled. A private, personal liability or non-profit company may voluntarily elect an audit: By including an audit requirement in the company s memorandum of incorporation; By a shareholders resolution; or In terms of a board decision. In the event that a company voluntarily elects to have its annual financial statements for any particular year audited, by shareholder s resolution or in terms of a board decision, such company will not automatically be required to comply with the enhanced accountability requirements in Chapter 3 of the Act relating to auditors, audit committees or company secretaries, unless its memorandum of incorporation provides otherwise. A company which voluntarily elects to be audited by including an audit requirement in its memorandum of incorporation will be required to comply with section 90 of the Act, which deals with the appointment of the auditor. All other sections in Chapter 3 relating to the resignation, rotation, rights and restricted functions of the auditor, as well as the sections relating to audit committees and company secretary, will not apply. Any company, whose memorandum of incorporation requires compliance with certain or all of the provisions in Chapter 3 will be required to comply with the enhanced accountability requirements in this Chapter, to the extent that the company s memorandum of incorporation so requires. In the case of listed companies, the JSE Limited Listings Requirements clarify that all subsidiaries of listed companies (including applicants) must continue to be audited regardless of their classification within the Act. The memorandums of incorporation of such subsidiaries must be amended to make provision for the audit. In applying this requirement, companies should have regard to the definition of a subsidiary in the JSE Listings Requirements. Companies that require an independent review Certain categories of private, personal liability and non-profit companies that are not subject to audit will be required to have their annual financial statements independently reviewed. This independent review must be performed in accordance with ISRE 2400, the International Standard for Review Engagements, as issued from time to time by the International Auditing and Assurance Standards Board or its successor body. The Regulations prescribe the categories of companies to which the independent review requirement will apply as follows: Private, personal liability and non-profit companies whose public interest score in that financial year is at least 100 (but less than 350) and its annual financial statements for that year were independently compiled; and Private, personal liability and non-profit companies whose public interest score in that financial year is less than See Sections 30 and 90 of the Act read with Regulations 28 and Audit and accounting requirements of the new Companies Act Steering Point No: 213 The Regulations clarify that the following categories of companies will not be required to perform an independent review: A company that is exempt in terms of Section 30(2A) of the Act (discussed later in this publication); A company that is required by its own memorandum of incorporation, or in terms of the Act or by Regulation, to have its annual financial statements for that financial year audited; or A company that has voluntarily had its annual financial statements for that year audited. The Regulations provide for the qualification of persons permitted to perform an independent review of a company s annual financial statements, which is shown in the table below: Qualification of persons permitted to perform an independent review Independent reviewer Public interest score at least 100 and annual financial statements independently compiled Public interest score less than 100 A registered auditor in terms of the Auditing Profession Act, 2005; X X A member in good standing of a professional body that has been accredited in terms of Section 33 of the Auditing Profession Act, 2005; or Qualified to be appointed as an accounting officer of a close corporation in terms of Section 60 (1), (2) and (4) of the Close Corporations Act, X X X The independent reviewer must meet the independence requirements set out in Regulation 26(1)(d) for an independent accounting professional, as discussed earlier in this publication. The independent reviewer may not be the same individual who was involved in the preparation of the said annual financial statements and who acted as the independent accounting professional with respect to those annual financial statements. Companies exempt from independent review A company may qualify for an exemption from having its annual financial statements independently reviewed in terms of Section 30(2A) of the Act. The Act provides that if, with respect to a particular company, every person who is a holder of, or has a beneficial interest in any securities issued by that company, is also a director of the company, that company is exempt from the requirements in Section 30 of the Act to have its annual financial statements independently reviewed. This exemption: Does not apply to the company if it falls into a class of company that is required by the Regulations to have its annual financial statements audited; and Does not relieve the company of any requirement to have its financial statements audited or reviewed in terms of another law or in terms of any agreement to which the company is a party. While the definition of person in Section 1 includes a juristic person, Section 69 clarifies that juristic persons are ineligible from being appointed as directors. Companies in which beneficial interest holders are juristic persons, for example, in a group situation where the shares in a subsidiary company are held by its holding company, the holding company will be disqualfied from being appointed as a director. As a result, the subsidiary company will not qualify for the exemption from independent review. PwC 1114 Reportable irregularities 9 The Regulations introduce reporting requirements for independent reviewers with regard to any reportable irregularities. While the concept of a reportable irregularity currently exists for registered auditors in terms of the Auditing Profession Act, 2005, the requirement to report as a result of performing an independent review, where the individual is not also appointed as auditor of the company, is new. In fact, in the past, where an individual auditor performed an engagement to review financial statements in terms of ISRE 2400 at a client that was not also an audit client, there was no reporting responsibility in terms of the Auditing Profession Act, 2005, to report any irregularities. It is also interesting to note that in terms of the Auditing Profession Act, 2005, the auditor must refer to the reportable irregularity in the audit report, while the Act does not contain a requirement for the independent reviewer to refer to the reportable irregularity in concluding his review opinion. The table below compares reportable irregularities required to be reported in terms of the Companies Act, 2008 and the Auditing Profession Act, 2005: Companies Act, 2008 Auditing Profession Act, 2005 Definition of reportable irregularity Any act or omission committed by any person responsible for the management of a company, which unlawfully has caused or is likely to cause material financial loss to the company or to any member, shareholder, creditor or investor of the company in respect of his, her or its dealings with that entity; or is fraudulent or amounts to theft; or causes or has caused the company to trade under insolvent circumstances. Any unlawful act or omission committed by any person responsible for the management of an entity, which has caused or is likely to cause material financial loss to the entity or to any partner, member, shareholder, creditor or investor of the entity in respect of his, her or its dealings with that entity; or is fraudulent or amounts to theft; or represents a material breach of any fiduciary duty owed by such person to the entity or any partner, member, shareholder, creditor or investor of the entity under any law applying to the entity or the conduct or management thereof. The reporter An independent reviewer of a company An individual registered auditor, referred to in section 44(1) (a) of an entity that is satisfied or has reason to believe that a reportable irregularity has taken place or is taking place in respect of that company/entity must, without delay, send a written report. The recipient of the report The Commission The Independent Regulatory Board for Auditors ( IRBA ) The initial report content Communication to the company The report must give particulars of the reportable irregularity and must include such other information and particulars as the independent reviewer/registered auditor considers appropriate. The independent reviewer/registered auditor must notify the members of the board/members of the management board* of the company/entity, in writing, of the sending of the report to the Commission/IRBA and include the provisions of the regulation/section. A copy of the report to the Commission/IRBA must accompany the notice. Communication to the Company must occur within three business days of sending the report to the Commission/ IRBA The process for subsequent reporting The independent reviewer must as soon as reasonably The registered auditor must as soon as reasonably possible but not later than 20 business days from the possible but no later than 30 days from the date on which date on which the initial report referred to above was the initial report referred to above was sent to the IRBA sent to the Commission take all reasonable measures to discuss the initial report with the members of the board/members of the management board of the company/entity; afford the members of the board/members of the management board of the company/entity an opportunity to make representations in respect of the report; and send another report to the Commission/IRBA. 9 See Regulation Audit and accounting requirements of the new Companies Act Steering Point No: 215 Annual returns 10 Every company must file an annual return in the prescribed form (CoR 30.1) together with the prescribed fee set out in Table CR2 B of the Regulations, unless exempt from such payment, within 30 business days after: The anniversary of its date of incorporation, in the case of a company incorporated in the Republic; or The date that its registration was transferred to the Republic, in the case of a domesticated company. Any company that has been inactive during the financial year preceding the date on which its annual return becomes due, may apply to the Commission for an exemption from payment of the fee, provided that the application is supported by the financial statements indicating that the company had in fact no turnover during that financial year. A company that is required by the Act or Regulations to have its annual financial statements audited must file a copy of the latest approved audited financial statements on the date that it files its annual return. Alternatively, a company that is not required in terms of the Act or Regulations to be audited, may elect to file a copy of its audited or reviewed statements together with the return. Finally, a company which does not file annual financial statements as described above, must file a financial accountability supplement to its annual return. The Commission must establish a system to select and review a sample of financial accountability supplements, audited annual financial statements or independently reviewed annual financial statements that have been filed, with the objective of monitoring compliance with the financial record keeping and financial reporting provisions of the Act. The Commission may issue a compliance notice to any such company setting out changes that are required to the company s practices to better comply with the specific provisions of the Act. Each year, in its annual return, every company must designate a director, employee or other person responsible for the company s compliance with the requirements of Chapter 2 Part C of the Act Transparency, accountability and integrity of companies and Chapter 3 Enhanced accountability and transparency, if these apply to the company. This function must be carried out by the company secretary where a company is required to appoint a company secretary. In all other instances, another suitable individual must assume this responsibility. Enhanced accountability 11 Public and state-owned companies are required to comply with the enhanced accountability requirements set out in Chapter 3 of the Act, subject to specific exemptions allowed by the Act. Chapter 3 includes the appointment of the company secretary, auditor and audit committee. A private, personal liability or non-profit company is required to comply with Chapter 3 only to the extent that the company s memorandum of incorporation so requires. If a company is required by the Act or the Regulations to have its annual financial statements audited every year, the provisions of Part C of the chapter, relating to auditors, will apply. 10 See Sections 33 and 88 of the Act read with Regulation See Sections 9, 34 and 84 read with Chapter 3 of the Act PwC 1316 Requirements for auditors 12 Requirement of the Act and Regulations Appointment of the auditor Public or state-owned company: Appointed each year at the annual general meeting. Private, personal liability or non-profit company that is required by its memorandum of incorporation, the Act or the Regulations to have its annual financial statements audited every year: Appointed at the annual general meeting at which the requirement first applies to the company and at each annual general meeting thereafter. To be appointed as auditor a person or firm: Must be a registered auditor; Must not be prohibited from being appointed; and Must be acceptable to the company s audit committee as being independent of the company, whether such audit committee was appointed as required by the Act or voluntarily. The following persons or firms are prohibited from being appointed as the auditor of a company: A director or prescribed officer of the company; An employee or consultant of the company who was or has been engaged for more than one year in the maintenance of any of the company s financial reords or the preparation of any of its financial statements; A director, officer or employee of a person appointed as company secretary in terms of the Act; A person who, alone or with a partner or employees, habitually or regularly performs the duties of accountant or bookkeeper, or performs related secretarial work, for the company; A person who, at any time during the five financial years immediately preceding the date of appointment, was a person contemplated in any of the subparagraphs above; or A person related to a person contemplated in the subparagraphs above. Resignation of the auditor Note: If a company appoints a firm as an auditor, the individual determined by that firm, in terms of section 44(1) of the Auditing Profession Act, 2005, to be responsible for performing the functions of auditor must satisy the requirements. Resignation is effective when the notice is filed. Before filling a vacancy, the board must propose the name of at least one registered auditor to be considered for appointment to the company s audit committee within 15 business days of the vacancy arising. The board may proceed in making an appointment of such proposed person if within five business days after delivering the proposal, the audit committee does not give notice in writing to the board rejecting the proposal. Removal of the auditor If the board removes the auditor from office, the auditor may require the company to include a statement in the director s report setting out the auditor s contention as to the circumstances that resulted in the removal. To exercise this power, the auditor must give written notice to the company by not later than the end of the financial year in which the removal took place and that notice must include the statement referred to above. Vacancies in the office of auditor Rotation requirements A vacancy in the office of auditor must be filled by the board within 40 business days. The same individual may not serve as the auditor for more than five consecutive financial years. Schedule 5 clarifies that the five consecutive financial years contemplated must be calculated from the date of commencement of the Act. If an individual has served as the auditor for two or more consecutive financial years and then ceases to be the auditor, the individual may not be appointed again as the auditor of that company until after the expiry of at least two further financial years. If a company has appointed two or more persons as joint auditors, the company must manage the rotation required by Section 92 of the Act in such a manner that all of the joint auditors do not relinquish office in the same year. 12 See Sections 84, 90, 91, 92, 93 read with the transitional arrangements in Schedule 5 of the Act 14 Audit and accounting requirements of the new Companies Act Steering Point No: 217 Requirement of the Act and Regulations Rights and restricted functions of the auditor The auditor has the right of access to the accounting records and all books and documents of the company and is entitled to require from the directors or prescribed officers of the company any information and explanations necessary for the performance of his/her duties. In the case of the auditor of a holding company, he/she has the right of access to all current and former financial statements of any subsidiary of that holding company and is entitled to require from the directors or officers of the holding company or subsidiary any information and explanations in connection with any such statements and in connection with the accounting records, books and documents of the subsidiary as necessary for the performance of the auditor s duties. The obligations imposed on the auditor in terms of Section 300 of the old Act have not been retained. For example, there is no requirement for the auditor to satisfy himself that minute books and attendance registers in respect of meetings of the company and of directors and managers have been kept in the proper form. The auditor is entitled to attend any general shareholders meeting, receive all notices of and other communications relating to any general shareholders meeting and be heard at any general shareholders meeting on any part of the business of the meeting that concerns the auditor s duties or functions. The requirement for the auditor to attend the annual general meeting of certain categories of companies, as introduced by the Corporate Laws Amendment Act, 2006, has been removed. Transitional arrangements A person holding office as an auditor of a pre-existing company immediately before the effective date continues to hold that office as from the effective date, subject to the company s memorandum of incorporation and the requirements of the Act. A person contemplated above who in terms of the Act is ineligible to be, or disqualified from being the auditor, is regarded as having resigned from every such office in any company as from the effective date. A vacancy in the office of auditor of a pre-existing company as from the effective date, irrespective of how such vacancy arises, is to be filled in accordance with the requirements of the Act. PwC 1518 Audit committees: Appointment, membership and qualifications 13 An independent audit committee plays a key role in identifying and managing financial risks. Section 94 of the Act regulates the different aspects of audit committees and applies concurrently with Section 64 of the Banks Act, dealing with audit committees of banks, as prescribed. The table below provides a comparison of key requirements for an audit committee in terms of the old and the new Act. Key requirements for an audit committee Election/appointment of the audit committee Categories of companies that are required to have an audit committee Exemption from appointing an audit committee Vacancies on the committee Companies Act, 2008 (New Act) An audit committee must be elected at each annual general meeting. Public companies, state-owned companies and any other company that is required by its memorandum of incorporation to have an audit committee. Similar to the Companies Act, The exemption applies to subsidiaries where the holding company has an audit committee that will perform the prescribed functions on behalf of the subsidiary. The board of a company must appoint a person to fill any vacancy on the audit committee within 40 business days after the vacancy arises. Companies Act, 1973 (Old Act) In every financial year in which a company is a widely held company, its board of directors must appoint an audit committee for the following financial year. Widely held companies. Widely held companies are exempted from appointing an audit committee if the audit committee of the holding company will perform the functions on behalf of that company. No specific provision. Number of members At least three members are required. At least two members are required. Membership Each member of the audit committee must be a director of the company. Each member must not be: Involved in the day-to-day management of the company s business or have been so involved at any time during the previous financial year; A prescribed officer, or full-time employee, of the company or another related or inter-related company, or have been such an officer or employee at any time during the previous three financial years; or The audit committee must consist only of nonexecutive directors of the company who must act independently. A director is a non-executive director of a company if the director: Is not involved in the day-to-day management of the business and has not in the past three financial years been a full-time salaried employee of the company or its group; Is not a member of the immediate family of an individual mentioned above. A material supplier or customer of the company, such that a reasonable and informed third party would conclude in the circumstances that the integrity, impartiality or objectivity of that director is compromised by that relationship; and Related to any person who falls within any of the criteria set out in the sub-paragraphs above. The terms related and inter-related are defined in Section 2 of the Act. A director acts independently if that director: Expresses opinions, exercises judgment and makes decisions impartially; and Is not related to the company or to any shareholder, supplier, customer or other director of the company in a way that would lead a reasonable and informed third party to conclude that the integrity, impartiality or objectivity of that director is compromised by that relationship. Qualification of members Note that the Act does not use the terms executive, non-executive or independent non-executive directors but rather defines the membership criteria. The Regulations prescribe that at least one-third of the members of a company s audit committee at any particular time must have academic qualifications, or experience, in economics, law, corporate governance, finance, accounting, commerce, industry, public affairs or human resource management. No provision for the prescription of qualifications by the minister. 13 See Section 94 of the Act read with Regulation Audit and accounting requirements of the new Companies Act Steering Point No: 219 Functions of the audit committee 14 Neither the appointment nor the duties of an audit committee reduce the functions and duties of the board or the directors of the company, except with respect to the appointment, fees and terms of engagement of the auditor. A company must pay all expenses reasonably incurred by its audit committee, including the fees of any consultant or specialist engaged by the audit committee to assist it in the performance of its functions. Functions relating to the terms of engagement of the auditor The audit committee is required to: Nominate for appointment as auditor of the company a registered auditor who, in the opinion of the audit committee, is independent of the company; Determine the fees to be paid to the auditor and the auditor s terms of engagement; and Ensure that the appointment of the auditor complies with the Act and any other legislation relating to the appointment of auditors. Functions relating to non-audit services performed by the auditor The audit committee is required to: Determine the nature and extent of any non-audit services that the auditor may provide to the company, or that the auditor must not provide to the company, or a related company; and Pre-approve any proposed agreement with the auditor for the provision of non-audit services to the company. General functions The audit committee is required to: Receive and deal appropriately with any concerns or complaints, whether from within or outside the company, or on its own initiative relating to: The accounting practices and internal audit of the company; The content or auditing of the company s financial statements; The internal financial controls of the company; or Any related matter; To make submissions to the board on any matter concerning the company s accounting policies, financial control, records and reporting; and To perform such other oversight functions as may be determined by the board. Reporting in the annual financial statements The audit committee is required to prepare a report to be included in the annual financial statements for that financial year: Describing how the audit committee carried out its functions; Stating whether the audit committee is satisfied that the auditor was independent of the company; and Commenting in any way the committee considers appropriate on the financial statements, the accounting practices and the internal financial control of the company. It is possible that including such report in the annual financial statements may create a conflict of interest for the auditor, who would have to express an opinion on a statement regarding his own independence. This may result in a conflict with the Auditing Profession Act, 2005 (APA). In terms of Section 5 of the Act, in the event of conflict between the APA and the Act, the APA takes precedence. As a result, it should be considered that the report of the audit committee be presented outside the audited annual financial statements. 14 See Section 94 of the Act PwC 1720 Auditor independence One of the key functions of the audit committee is to ensure that the registered auditor is independent of the company. In considering whether a registered auditor is independent, the audit committee of that company must verify that the auditor does not receive any direct or indirect remuneration or other benefit from the company, except as auditor or for rendering other services to the company, to the extent permitted by the audit committee. The committee must also consider whether the auditor s independence may have been prejudiced as a result of any previous appointment as auditor or having regard to the extent of any consultancy, advisory or other work undertaken by the auditor for the company. Finally, the committee must consider compliance with other criteria relating to independence or conflict of interest as prescribed by the Independent Regulatory Board for Auditors, established by the Auditing Profession Act, 2005, in relation to the company and, if the company is a member of a group of companies, any other company within that group. Nothing precludes the appointment of an auditor by a company at its annual general meeting other than one nominated by the audit committee. However, if such an auditor is appointed, the appointment is valid only if the audit committee is satisfied that the proposed auditor is independent of the company. Resolution of disputes and clarification of doubts 15 If, as a consequence of the coming into effect of the new Act and the repeal of the old Act, a conflict, dispute or doubt arises within two years after the effective date concerning the particular manner or form in which, or time by which, a pre-existing company is required to prepare its annual financial statements, convene an annual general meeting, provide copies of its annual financial statements to its shareholders and any notice or any other document; file any particular document with the Commission; or take any other particular action required in terms of the new Act or the company s memorandum of incorporation, the company may apply to the Tribunal for directions and a member of the Tribunal may make an administrative order that is appropriate and reasonable in the circumstances. 15 See the transitional arrangements in Schedule 5 of the Act 18 Audit and accounting requirements of the new Companies Act Steering Point No: 2 View more
1 Important notice: 1. Every effort is made to ensure that the information in this guide is correct. Nevertheless, that information is given purely as guidance to assist with particular problems relating More information The Companies Act Audit requirement and other matters related to the audit
The Companies Act Audit requirement and other matters related to the audit 1 Next The Act provides the Minister of Trade and Industry with As stated above, the Act requires public companies and state owned More information The new Hong Kong Companies Ordinance, Chapter 622 of the Laws of Hong Kong, (the New CO )
New Hong Kong Companies Ordinance Introduction The new Hong Kong Companies Ordinance, Chapter 622 of the Laws of Hong Kong, (the New CO ) came into operation on 3 March 2014. The New CO consists of 21 More information Companies Act No. 71 of 2008 An Implementation Guide
Companies Act No. 71 of 2008 An Implementation Guide The New Companies Act An Implementation Guide It has been announced that the new Companies Act No. 71 of 2008 (New Act), which will repeal the existing More information The Companies Act 71 of 2008. kpmg.co.za
The Companies Act 71 of 2008 kpmg.co.za c Companies Act 71 of 2008 Companies Act 71 of 2008 1 Contents Glossary 1 Introduction 2 Overview 3 1 Categories of companies 4 2 The future of close corporations More information LONDON STOCK EXCHANGE HIGH GROWTH SEGMENT RULEBOOK 27 March 2013
LONDON STOCK EXCHANGE HIGH GROWTH SEGMENT RULEBOOK 27 March 2013 Contents INTRODUCTION... 2 SECTION A ADMISSION... 3 A1: Eligibility for admission... 3 A2: Procedure for admission... 4 SECTION B CONTINUING More information SOUTH AFRICAN COMPANIES ACT: CHAPTER 5-112-116, 124 Fundamental Transactions, Takeovers And Offers
This document contains selected sections of the South African Companies Act and the Delaware General Corporation Law applicable to mergers and acquisitions. It is intended to be used in connection with More information COLLECTIVE INVESTMENT LAW DIFC LAW No. 2 of 2010
---------------------------------------------------------------------------------------------- COLLECTIVE INVESTMENT LAW DIFC LAW No. 2 of 2010 ---------------------------------------------------------------------------------------------- More information Chapter 3 Financial Year
[PART 6 FINANCIAL STATEMENTS, ANNUAL RETURN AND AUDIT Chapter 1 Preliminary 269. What this Part contains and use of prefixes - Companies Act and IFRS. 270. Overall limitation on discretions with respect More information INTERNATIONAL COLLECTIVE INVESTMENT SCHEMES LAW
REPUBLIC OF CYPRUS INTERNATIONAL COLLECTIVE INVESTMENT SCHEMES LAW (No 47(I) of 1999) English translation prepared by The Central Bank of Cyprus ARRANGEMENT OF SECTIONS PART I PRELIMINARY AND GENERAL Section More information A GUIDE TO THE OCCUPATIONAL RETIREMENT SCHEMES ORDINANCE
A GUIDE TO THE OCCUPATIONAL RETIREMENT SCHEMES ORDINANCE Issued by THE REGISTRAR OF OCCUPATIONAL RETIREMENT SCHEMES Level 16, International Commerce Centre, 1 Austin Road West, Kowloon, Hong Kong. ORS/C/5 More information Guide to Profit Sharing Schemes
Guide to Profit Sharing Schemes PROFIT SHARING SCHEMES This booklet describes the provisions of Chapter 1 of Part 17, Taxes Consolidation Act, 1997 and Schedule 11 of that Act, incorporating all amendments More information PUBLIC FINANCE MANAGEMENT ACT NO. 1 OF 1999
PUBLIC FINANCE MANAGEMENT ACT NO. 1 OF 1999 as amended by Public Finance Management Amendment Act, No. 29 of 1999 ACT To regulate financial management in the national government and provincial governments; More information AUDITING PROFESSION ACT, 2005
AUDITING PROFESSION ACT, 2005 (ACT 26 OF 2005) ACT To provide for the establishment of the Independent Regulatory Board for Auditors; to provide for the education, training and professional develcipment More information NONPROFIT ORGANISATIONS ACT
REPUBLIC OF SOUTH AFRICA NONPROFIT ORGANISATIONS ACT REPUBLIEK VAN SUID-AFRIKA WET OP ORGANISASIES SONDER WINSOOGMERK No, 1997 ACT To provide for an environment in which nonprofit organisations can flourish; More information Chapter 6A SPONSORS AND COMPLIANCE ADVISERS
Chapter 6A SPONSORS AND COMPLIANCE ADVISERS Definitions and interpretation 6A.01 In this Chapter: (1) Compliance Adviser means any corporation or authorised financial institution licensed or registered More information 9. Modified application with respect to state-owned companies 10. Modified application with respect to non-profit companies CHAPTER 2
9. Modified application with respect to state-owned companies. Modified application with respect to non-profit companies CHAPTER 2 FORMATION, ADMINISTRATION AND DISSOLUTION OF COMPANIES 4 Part A Reservation More information Companies (Consolidated Accounts) 1999-28
Companies (Consolidated Accounts) 1999-28 COMPANIES (CONSOLIDATED ACCOUNTS) ACT by Act. 2014-19 as from 1.11.2014 Principal Act Act. No. 1999-28 Commencement 1.4.2000 Assent 28.10.1999 Amending enactments More information PUBLIC FINANCE MANAGEMENT ACT NO. 1 OF 1999
PUBLIC FINANCE MANAGEMENT ACT NO. 1 OF 1999 [ASSENTED TO 2 MARCH, 1999] [DATE OF COMMENCEMENT: 1 APRIL, 2000] (Unless otherwise indicated) (English text signed by the President) NATIONAL TREASURY This More information THE COMPANIES ACT 2006 COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL ARTICLES OF ASSOCIATION SHELTERBOX TRUST. Companies Act 2006
Company No: 04612652 Charity No: 1096479 THE COMPANIES ACT 2006 COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL ARTICLES OF ASSOCIATION OF SHELTERBOX TRUST Companies Act 2006 Company limited More information CONTENT OF THE AUDIT LAW
CONTENT OF THE AUDIT LAW I. GENERAL PROVISIONS Article 1 This Law shall regulate the conditions for conducting an audit of legal entities which perform activities, seated in the Republic of Macedonia. More information Appendix 14 CORPORATE GOVERNANCE CODE AND CORPORATE GOVERNANCE REPORT
Appendix 14 CORPORATE GOVERNANCE CODE AND CORPORATE GOVERNANCE REPORT The Code This Code sets out the principles of good corporate governance, and two levels of recommendations: code provisions; and recommended More information DECISION NO (94/R) OF 2005 CONCERNING THE LISTING OF DEBT SECURITIES
DECISION NO (94/R) OF 2005 CONCERNING THE LISTING OF DEBT SECURITIES The Chairman of the Board of Directors of the Stocks and Commodities Authority has, After pursuing the provisions of Federal Law No. More information Ministry of Labour and Social Policy LAW ON VOLUNTARY FULLY FUNDED PENSION INSURANCE (189347.11)
Ministry of Labour and Social Policy LAW ON VOLUNTARY FULLY FUNDED PENSION INSURANCE 1 Table of Contents CHAPTER 1 GENERAL PROVISIONS... 3 CHAPTER 2 VOLUNTARY PENSION FUNDS... 7 CHAPTER 3 PENSION COMPANIES More information ACCReDITATION COuNCIL OF TRINIDAD AND TOBAGO ACT
ACCReDITATION COuNCIL OF TRINIDAD AND TOBAGO ACT ChAPTeR 39:06 Act 16 of 2004 Amended by 16 of 2007 10 of 2008 Current Authorised Pages Pages Authorised (inclusive) by 1 8.. 9 16.. 17 19.. 2 Chap. 39:06 More information - 1 - CATHAY PACIFIC AIRWAYS LIMITED. Corporate Governance Code. (Amended and restated with effect from 3rd March 2014)
- 1 - CATHAY PACIFIC AIRWAYS LIMITED (Amended and restated with effect from 3rd March 2014) This Code sets out the corporate governance practices followed by the Company. The Board and its responsibilities More information CAYMAN ISLANDS. Supplement No. 1 published with Gazette No. 22 of 22nd October, 2012. MUTUAL FUNDS LAW (2012 REVISION)
CAYMAN ISLANDS Supplement No. 1 published with Gazette No. 22 of 22nd October, 2012. MUTUAL FUNDS LAW (2012 REVISION) Law 13 of 1993 consolidated with Laws 18 of 1993, 16 of 1996 (part), 9 of 1998, 4 of More information Education Services for Overseas Students Act 2000
Education Services for Overseas Students Act 2000 Act No. 164 of 2000 as amended This compilation was prepared on 17 December 2008 taking into account amendments up to Act No. 144 of 2008 The text of any More information PREFACE. How to Register a Business in Namibia 2
How to Register a Business in Namibia 1 PREFACE This booklet explores the ways how the choice of business entity may be important to you as a business person. This guide is designed to be your introduction More information Part 1 National Treasury
PUBLIC FINANCE MANAGEMENT ACT 1 OF 1999 [ASSENTED TO 2 MARCH 1999] [DATE OF COMMENCEMENT: 1 APRIL 2000] (Unless otherwise indicated) (English text signed by the President) as amended by Public Finance More information REPUBLIC OF VANUATU OFFSHORE LIMITED PARTNERSHIPS ACT NO. 39 OF 2009. Arrangement of Sections
REPUBLIC OF VANUATU OFFSHORE LIMITED PARTNERSHIPS ACT NO. 39 OF 2009 Arrangement of Sections PART 1 INTRODUCTION 1 Interpretation... PART 2 ESTABLISHMENT OF OFFSHORE LIMITED PARTNERSHIPS 2 Offshore limited More information ON CLOSE CORPORATIONS EXPOSURE DRAFT 344 THE SAICA DRAFT GUIDE ON CLOSE CORPORATIONS
EXPOSURE DRAFT 344 THE SAICA ON CLOSE CORPORATIONS Revised July 2014 COPYRIGHT 2014 THE SOUTH AFRICAN INSTITUTE OF CHARTERED ACCOUNTANTS Copyright in all publications originated by The South African Institute More information Companies (Model Articles) Notice. Contents
B2195 Companies (Model Articles) Notice Contents Section Page 1. Commencement...B2197 2. Model articles for public companies limited by shares...b2197 3. Model articles for private companies limited by More information Reporting requirements for non-reporting entities
REGULATORY GUIDE 85 Reporting requirements for non-reporting entities July 2005 What this guide is about 1 This guide provides guidance on application of the reporting entity test and the reporting obligations More information KAZAKHSTAN LAW ON JOINT STOCK COMPANIES
KAZAKHSTAN LAW ON JOINT STOCK COMPANIES Important Disclaimer This does not constitute an official translation and the translator and the EBRD cannot be held responsible for any inaccuracy or omission in More information Corporate Governance Regulations
Corporate Governance Regulations Contents Part 1: Preliminary Provisions Article 1: Preamble... Article 2: Definitions... Part 2: Rights of Shareholders and the General Assembly Article 3: General Rights More information The Companies Act 2014
BELIZE LIMITED LIABILITY PARTNERSHIP ACT CHAPTER 258 REVISED EDITION 2003 SHOWING THE SUBSTANTIVE LAWS AS AT 31ST MAY, 2003 This is a revised edition of the Substantive Laws, prepared by the Law Revision More information DORMANT BANK ACCOUNTS (JERSEY) LAW 201-
DORMANT BANK ACCOUNTS (JERSEY) LAW 201- REPORT Explanatory Note Draft 12A 7 July 2015 Page - 1 File No.711 Dormant Bank Accounts (Jersey) Law 201- Arrangement DORMANT BANK ACCOUNTS (JERSEY) LAW 201- Arrangement More information KINGDOM OF SAUDI ARABIA. Capital Market Authority CREDIT RATING AGENCIES REGULATIONS
KINGDOM OF SAUDI ARABIA Capital Market Authority CREDIT RATING AGENCIES REGULATIONS English Translation of the Official Arabic Text Issued by the Board of the Capital Market Authority Pursuant to its Resolution More information MINORITY SHAREHOLDER RIGHTS IN ONTARIO PRIVATE COMPANIES
MINORITY SHAREHOLDER RIGHTS IN ONTARIO PRIVATE COMPANIES Phil Thompson Business Lawyer, Corporate Counsel www.thompsonlaw.ca Even without a unanimous shareholders agreement, minority shareholders in private More information Authorised Persons Regulations
Authorised Persons Regulations Contents Part 1: General Provisions Article 1: Preliminary... Article 2: Definitions... Article 3: Compliance with the Regulations and Rules... Article 4: Waivers... Part More information The Mortgage Brokerages and Mortgage Administrators Regulations
1 AND MORTGAGE ADMINISTRATORS M-20.1 REG 1 The Mortgage Brokerages and Mortgage Administrators Regulations being Chapter M-20.1 Reg 1 (effective October 1, 2010) as amended by Saskatchewan Regulations, More information THE COMPANIES ACT 2006 PRIVATE COMPANY LIMITED BY GUARANTEE ARTICLES OF ASSOCIATION
Company number: 4337774 THE COMPANIES ACT 2006 PRIVATE COMPANY LIMITED BY GUARANTEE ARTICLES OF ASSOCIATION OF BRITISH SOCIETY OF DENTAL HYGIENE & THERAPY LIMITED (the "Company") (adopted by special resolution More information CHINA CITY INFRASTRUCTURE GROUP LIMITED 中 國 城 市 基 礎 設 施 集 團 有 限 公 司 (Incorporated in the Cayman Islands with limited liability)
CHINA CITY INFRASTRUCTURE GROUP LIMITED 中 國 城 市 基 礎 設 施 集 團 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) TERMS OF REFERENCE FOR THE AUDIT COMMITTEE - 1 - Definitions 1. For the purposed More information Chapter 7 GENERAL ACCOUNTANTS REPORTS AND PRO FORMA FINANCIAL INFORMATION. When required
Chapter 7 GENERAL ACCOUNTANTS REPORTS AND PRO FORMA FINANCIAL INFORMATION When required 7.01 This Chapter sets out the detailed requirements for accountants reports on the profits and losses, assets and More information Knowledge is power. Consumer Protection Act Series #1
www.pwc.com/za/retail-and-consumer Knowledge is power Consumer Protection Act Series #1 Make sure you don t get it wrong on consumer rights November 2010 In this issue: We provide an overview of the Consumer More information Act on Investment Firms 26.7.1996/579
Please note: This is an unofficial translation. Amendments up to 135/2007 included, May 2007. Act on Investment Firms 26.7.1996/579 CHAPTER 1 General provisions Section 1 Scope of application This Act More information GUIDE TO INVESTMENT FUNDS IN BERMUDA
GUIDE TO INVESTMENT FUNDS IN BERMUDA CONTENTS PREFACE 1 1. Introduction 2 2. Principal Regulatory Framework 2 3. Investment Fund Structures and Forms 4 4. Segregated Accounts Companies and the Segregation More information Part 9. Accounts and Audit
Part 9 Division 1 Section 357 A3977 Part 9 Accounts and Audit Division 1 Preliminary 357. Interpretation (1) In this Part annual consolidated financial statements ( ) means the consolidated statements More information Queensland. Trust Accounts Act 1973
Queensland Trust Accounts Act 1973 Current as at 23 September 2013 Information about this reprint This reprint shows the legislation current as at the date on the cover and is authorised by the Parliamentary More information Main Securities Market LISTING RULES. and Admission to Trading Rules
Main Securities Market LISTING RULES and Admission to Trading Rules Release 2 14 April 2014 CONTENTS Chapter 1 Compliance with and Enforcement of the Listing Rules 1.1 Preliminary 1.2 Modifying Rules and More information DIRECTOR S & OFFICER S LIABILITY INSURANCE PROPOSAL FORM SHIELD
DIRECTOR S & OFFICER S LIABILITY INSURANCE PROPOSAL FORM SHIELD The following documents must be submitted with this proposal form: ( ( ( (d) (e) The annual report and financial statements of the company More information Queensland. Health Practitioner Regulation (Administrative Arrangements) National Law Act 2008
Queensland Health Practitioner Regulation (Administrative Arrangements) National Law Act 2008 Act No. 62 of 2008 Queensland Health Practitioner Regulation (Administrative Arrangements) National Law Act More information Our responsibility is to express an opinion on these standalone financial statements based on our audit.
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JET AIRWAYS TRAINING ACADEMY PRIVATE LIMITED Report on the Standalone Financial Statements We have audited the accompanying financial statements of JET AIRWAYS More information Article 1. Article 2. The legislation shall mean this Law and the by-laws relating to the compliance with this Law.
ACCOUNTING AND AUDITING LAW I BASIC PROVISIONS Article 1 This Law shall govern the requirements for and manner of keeping books of account, preparing, presenting, submitting and disclosing financial statements, More information AVON PRODUCTS, INC. CORPORATE GOVERNANCE GUIDELINES. As amended by the Board of Directors as of December 9, 2013
I. Purpose of Guidelines AVON PRODUCTS, INC. CORPORATE GOVERNANCE GUIDELINES As amended by the Board of Directors as of December 9, 2013 These corporate governance guidelines are intended to set a proper More information OPEN JOINT STOCK COMPANY AGENCY FOR HOUSING MORTGAGE LENDING. Agency for Housing Mortgage Lending OJSC INFORMATION POLICY GUIDELINES.
OPEN JOINT STOCK COMPANY AGENCY FOR HOUSING MORTGAGE LENDING APPROVED: by decision of the Supervisory Council (minutes No 09 of 21 December 2007) Agency for Housing Mortgage Lending OJSC INFORMATION POLICY More information Part 9 Accounts and Audit
Part 9 Accounts and Audit INTRODUCTION Part 9 (Accounts and Audit) of the new Companies Ordinance (Cap. 622) ( new CO ) contains the accounting and auditing requirements, namely provisions in relation More information Company Directors' Responsibilities
Company Directors' Responsibilities CONTENTS Company Directors' Responsibilities 2 Disqualification 4 The Powers And Duties Of Company Directors 6 Basic Statutory Obligations Of A Company Under The Companies More information Companies Regulations (COR)
Appendix 9 In this appendix underlining indicates new text and striking through indicates deleted text. N.B. As mentioned in paragraph 7 of this consultation paper, these regulations are made under the More information Financial Advisers (Amendment) Bill
Financial Advisers (Amendment) Bill Bill No. 15/2015. Read the first time on 11 May 2015. A BILL intituled An Act to amend the Financial Advisers Act (Chapter 110 of the 2007 Revised Edition). Be it enacted More information PARTNERSHIPS ACT LAWS OF KENYA. No. 16 of 2012
LAWS OF KENYA PARTNERSHIPS ACT No. 16 of 2012 Revised Edition 2012 Published by the National Council for Law Reporting with the Authority of the Attorney-General www.kenyalaw.org [Rev. 2012] No. 16 of More information Supplement No. 5 published with Gazette No. 15 of 20th July, 2009. MUTUAL FUNDS LAW. (2009 Revision)
Supplement No. 5 published with Gazette No. 15 of 20th July, 2009. Mutual Funds Law (2009 Revision) MUTUAL FUNDS LAW (2009 Revision) Law 13 of 1993 consolidated with Laws 18 of 1993, 16 of 1996 (part), More information FIFTH RESTATED CERTIFICATE OF INCORPORATION OF THE CHARLES SCHWAB CORPORATION (Effective May 7, 2001)
FIFTH RESTATED CERTIFICATE OF INCORPORATION OF THE CHARLES SCHWAB CORPORATION (Effective May 7, 2001) (Originally incorporated on November 25, 1986, under the name CL Acquisition Corporation) FIRST. The More information ENTERPRISE SECURITIES MARKET RULES FOR COMPANIES
ENTERPRISE SECURITIES MARKET RULES FOR COMPANIES Release 3 16 October 2015 Contents Introduction 3 Part 1 ESM Rules 4 Retention and role of an ESM Advisor 4 Applicants for ESM 4 Special conditions for More information Payment and Settlement Systems (Finality and Netting) Bill
Bill No. 41/02 Payment and Settlement Systems (Finality and Netting) Bill Read the first time on 31st October 02. PAYMENT AND SETTLEMENT SYSTEMS (FINALITY AND NETTING) ACT 02 (No. of 02) ARRANGEMENT OF More information REPUBLIC OF TRINIDAD AND TOBAGO. Act No. 16 of 2004
Legal Supplement Part A to the Trinidad and Tobago Gazette, Vol. 43, No. 102, 17th June, 2004 Legal Supplement Part A to the Trinidad and Tobago Second Session Eighth Parliament Republic of Trinidad and More information The board of directors of a company is primarily responsible for:
The board of directors of a company is primarily responsible for: Determining the company s strategic objectives and policies. Monitoring progress towards achieving the objectives and policies. Appointing More information Authorisation Requirements and Standards for Debt Management Firms
2013 Authorisation Requirements and Standards for Debt Management Firms 2 Contents Authorisation Requirements and Standards for Debt Management Firms Contents Chapter Part A: Authorisation Requirements More information CORPORATE GOVERNANCE AND KEY COMPANY LAW ISSUES IN CHALLENGING ECONOMIC TIMES
CORPORATE GOVERNANCE AND KEY COMPANY LAW ISSUES IN CHALLENGING ECONOMIC TIMES INTRODUCTION Directors stand in a fiduciary relationship to the company and there are general fiduciary duties imposed upon More information The Limited Partnership Bill, 2010 THE LIMITED LIABILITY PARTNERSHIP BILL 2010 ARRANGEMENT OF CLAUSES PART I PRELIMINARY. Clause
THE LIMITED LIABILITY PARTNERSHIP BILL 2010 ARRANGEMENT OF CLAUSES 1 Short title and commencement. 2 Interpretation. PART I PRELIMINARY Clause PART II REGISTRAR AND REGISTRAR OF LIMITED LIABILITY PARTNERSHIPS More information Directors' duties and liabilities under Cayman Islands law
Directors' duties liabilities under Cayman Isls law NOVEMBER 2014 For more briefings visit mourantozannes.com This briefing is only intended to give a summary general overview of the subject matter. It More information ASSOCIATION OF INDEPENDENT LSCB CHAIRS LIMITED ARTICLES OF ASSOCIATION
ASSOCIATION OF INDEPENDENT LSCB CHAIRS LIMITED ARTICLES OF ASSOCIATION CONTENTS CLAUSE 1. Interpretation... 1 2. Object... 3 3. Powers... 3 4. Not for distribution... 4 5. Winding up... 5 6. Guarantee... More information Reporting by Liquidators to the Director of Corporate Enforcement
STATEMENT OF INSOLVENCY PRACTICE S18B Reporting by Liquidators to the Director of Corporate Enforcement Contents Paragraphs Introduction 1 6 Commencement 7 9 Scope 10 12 Duty to report 13 15 Content of More information CORPORATE LEGAL FRAMEWORK IN JORDAN. Legal reference: The Companies Law No. 27 of 2002 and its amendments
CORPORATE LEGAL FRAMEWORK IN JORDAN Legal reference: The Companies Law No. 27 of 2002 and its amendments Under the Jordanian different types of companies offer different advantages and have different requirements More information Rathlin Ferries Limited. Directors report and financial statements Registered number SC306518 31 March 2010
Rathlin Ferries Limited Directors report and financial statements Registered number SC306518 Contents Directors report 1 Statement of Directors responsibilities 3 Independent auditors report 4 Profit and More information INCORPORATED LEGAL PRACTICES
The Law Society of New South Wales ACN 000 000 699 170 Phillip Street Sydney NSW 2000 Australia DX 362 Sydney Ph: (02) 9926 0156 Fax: (02) 9226 0257 E-mail: registry@lawsociety.com.au INCORPORATED LEGAL More information Number 38 of 2014. Companies Act 2014 VOLUME 2 SECTIONS 963 TO 1448 AND SCHEDULES 1 TO 17
Number 38 of 2014 Companies Act 2014 VOLUME 2 SECTIONS 963 TO 1448 AND SCHEDULES 1 TO 17 [2014.] Companies Act 2014. [No. 38.] PART 16 DESIGNATED ACTIVITY COMPANIES CHAPTER 1 Preliminary and definitions More information Explanatory Notes to Sample B MODEL ARTICLES OF ASSOCIATION FOR PRIVATE COMPANIES LIMITED BY SHARES
Explanatory Notes to Sample B MODEL ARTICLES OF ASSOCIATION FOR PRIVATE COMPANIES LIMITED BY SHARES This Model Articles of Association is the Model Articles prescribed in Schedule 2 of the Companies (Model More information David MacBrayne HR (UK) Limited Directors report and financial statements Registered number SC282760 31 March 2010
David MacBrayne HR (UK) Limited Directors report and financial statements Registered number SC282760 Contents Directors report 1 Statement of Directors responsibilities 3 Independent auditors report 4 More information AUDITING PROFESSION AMENDMENT BILL
REPUBLIC OF SOUTH AFRICA AUDITING PROFESSION AMENDMENT BILL (As introduced in the National Assembly (proposed section 75); explanatory summary of Bill published in Government Gazette No. 38119 of 24 October More information DISCIPLINARY BYE-LAWS
PROPOSED NEW DISCIPLINARY BYE-LAWS: NOT IN FORCE The Institute of Chartered Accountants In Ireland Incorporated by Royal Charter 14 th May 1888 Operating as DISCIPLINARY BYE-LAWS Effective Date: [ ] NOT More information Part 10. Directors and Company Secretaries
Part 10 Division 1 Subdivision 1 Section 453 A4183 Part 10 Directors and Company Secretaries Division 1 Appointment, Removal and Resignation of Directors Subdivision 1 Requirement to have Directors 453. More information South Africa. Country Q&A South Africa. Michael Adcock and Sylvia Lekhutlile, Bowman Gilfillan. Country Q&A CORPORATE ENTITIES
Corporate Governance and Directors Duties 2007 South Africa South Africa Michael Adcock and Sylvia Lekhutlile, Bowman Gilfillan www.practicallaw.com/8-209-9953 CORPORATE ENTITIES The main corporate entities More information International Accounting Standard 27 Consolidated and Separate Financial Statements
International Accounting Standard 27 Consolidated and Separate Financial Statements Scope 1 This Standard shall be applied in the preparation and presentation of consolidated financial statements for a More information AMENDED AND RESTATED CERTIFICATE OF INCORPORATION OF SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
AMENDED AND RESTATED CERTIFICATE OF INCORPORATION OF SCIENCE APPLICATIONS INTERNATIONAL CORPORATION FIRST: NAME. The name of the Corporation is Science Applications International Corporation. SECOND: ADDRESS. More information (28 February 2014 to date) LONG-TERM INSURANCE ACT 52 OF 1998
(28 February 2014 to date) [This is the current version and applies as from 28 February 2014, i.e. the date of commencement of the Financial Services Laws General Amendment Act 45 of 2013 to date] LONG-TERM More information Appendix 15 CORPORATE GOVERNANCE CODE AND CORPORATE GOVERNANCE REPORT
Appendix 15 CORPORATE GOVERNANCE CODE AND CORPORATE GOVERNANCE REPORT The Code This Code sets out the principles of good corporate governance, and two levels of recommendations: code provisions; and recommended More information Lawyers and Conveyancers Act (Trust Account) Regulations 2008
Lawyers and Conveyancers Act (Trust Account) Regulations 2008 Rt Hon Dame Sian Elias, Administrator of the Government Order in Council At Wellington this 30th day of June 2008 Present: Her Excellency the More information technical factsheet 177 Company purchase of own shares
technical factsheet 177 Company purchase of own shares CONTENTS 1. Introduction 2. Legal aspects 3. Taxation 4. Accounting 5. Reporting 6. General business planning issues 7. Ethical considerations for More information Key changes under the 2014 Hong Kong Companies Ordinance. www.charltonslaw.com
Key changes under the 2014 Hong Kong Companies Ordinance www.charltonslaw.com 0 Introduction Key Changes under the NCO The New Companies Ordinance (Cap. 622) (NCO) came into force on 3 March. The previous More information Small Business Grants (Employment Incentive) Act 2015 No 14
New South Wales Small Business Grants (Employment Incentive) Act 2015 No 14 Contents Page Part 1 Part 2 Preliminary 1 Name of Act 2 2 Commencement 2 3 Object of Act 2 4 Definitions 2 Grant scheme 5 Grant More information AMENDED AND RESTATED BYLAWS OF WAL-MART STORES, INC. (EFFECTIVE AS OF FEBRUARY 7, 2014)
AMENDED AND RESTATED BYLAWS OF WAL-MART STORES, INC. (EFFECTIVE AS OF FEBRUARY 7, 2014) ARTICLE I OFFICES Section 1. Registered Office. The registered office of Wal-Mart Stores, Inc. (the Corporation ) More information SAMPLE OF AN INCORPORATION AGREEMENT ADOPTING THE TABLE 1 ARTICLES INCORPORATION AGREEMENT
APPENDIX A SAMPLE OF AN INCORPORATION AGREEMENT ADOPTING THE TABLE 1 ARTICLES INCORPORATION AGREEMENT We propose to form a company under the Business Corporations Act (BC) under the name of (the Company More information Financial Institutions Directors and Officers Liability Insurance Proposal Form
Financial Institutions Directors and Officers Liability Insurance Proposal Form The following documents must be submitted with this proposal form: ( ( ( (d) (e) The annual report and financial statements More information (28 February 2014 to date) SHORT-TERM INSURANCE ACT 53 OF 1998
(28 February 2014 to date) [This is the current version and applies as from 28 February 2014, i.e. the date of commencement of the Financial Services Laws General Amendment Act 45 of 2013 to date] SHORT-TERM More information BANK OF MONTREAL SHAREHOLDER DIVIDEND REINVESTMENT AND SHARE PURCHASE PLAN
BANK OF MONTREAL SHAREHOLDER DIVIDEND REINVESTMENT AND SHARE PURCHASE PLAN This Offering Circular covers common shares of Bank of Montreal (the Bank ) which may be purchased on the open market through More information International Accounting Standard 28 Investments in Associates
International Accounting Standard 28 Investments in Associates Scope 1 This Standard shall be applied in accounting for investments in associates. However, it does not apply to investments in associates More information ST IVES PLC ST IVES LONG TERM INCENTIVE PLAN 2010. Approved by shareholders of the Company on. Adopted by the board of the Company on
DISPLAY VERSION ST IVES PLC ST IVES LONG TERM INCENTIVE PLAN 2010 Approved by shareholders of the Company on Adopted by the board of the Company on The Plan is a discretionary benefit offered by St Ives More information 2017 © DocPlayer.net Privacy Policy | Terms of Service | Feedback