Archive for October, 2012

Your company and its Memorandum of Incorporation (MOI) as required by the Companies Act no. 71, 2008

In terms of the new Companies Act (No. 71, 2008), all companies are required to replace their current Memorandum and Articles of Association (initial founding documents) with a single document, the Memorandum of Incorporation or MOI. This MOI has to be registered with the Companies and Intellectual Properties Commission (CIPC) by no later than 30 April 2013.

Some weeks ago Aucamp Scholtz Lubbe launched its own MOI-process in order to assist clients with the drafting and registration of these MOIs to ensure compliance with the requirements of the Act. At that time we were receiving the same questions from several clients with regard to the drafting and registration of the MOIs. We therefore deemed it necessary to provide you with the researched answers to these frequently asked questions (FAQs). Whether you have already started compiling your MOI or are struggling with some uncertainties or questions in this regard, we trust that this document will be both valuable and insightful.

FAQ 1: Do I really need a MOI or can I still use my initial founding documents (Memorandum and Articles of Association)?

Yes, you are allowed to use your initial founding documents as your MOI but there are significant implications that need to be taken into consideration.

Should a company decide not to have an MOI registered with the CIPC it is allowed to use its Memorandum and Articles of Association. The existing Memorandum and Articles of Association will, until such time as it is converted to an MOI, be deemed to be the MOI required in terms of the  2008 Act, even after the transition period which ends on 30 April 2013. The company will then continue to be governed in terms of the provisions of its Memorandum and Articles of Association, but only to the extent that those provisions are consistent with the 2008 Companies Act.

In terms of section 15(1) of the 2008 Act, any provision in the Memorandum and Articles of Association which is inconsistent with the 2008 Act, will be deemed void and the provisions of the 2008 Act will prevail. The company could therefore find itself in a situation where it is governed partially by the provisions of its deemed MOI and partially by the provisions of the 2008 Act in so far as the MOI provisions are deemed to be void.

Furthermore, it is important to note that all MOIs completed before the end of the transition period (30 April 2013) can be lodged with the CIPC at a reduced rate whereas, if the MOI is submitted after the expiration of the transition period, the standard fee for registering an MOI will be required.

FAQ 2: What are the implications for the audit requirements of my company, of not having an MOI?

In terms of the provisions of the 2008 Act, with certain exceptions companies might, based on their Public Interest Score, qualify for alternatives to a statutory audit, i.e. either an independent review or, in very limited circumstances, a compilation. However, as long as a company’s articles of association specify that an auditor shall be appointed, that company shall appoint an auditor and an audit shall be performed for the company in terms of the requirements of Chapter 3 of the 2008 Act. In essence this is a statutory audit with much more stringent requirements.

The most significant of these requirements is Section 90(2)(b)(iv) of the Act which stipulates that, in the case of a statutory audit, no accounting or secretarial services shall be performed by the appointed auditor.

Accordingly, in order to prevent the application of certain requirements in Chapter 3, either of the following has to be done:

(1)    Register the new MOI in terms of the 2008 Act with the CIPC

This will ensure that the company is allowed to use alternatives other than only an audit (based on their Public Interest Score).

Furthermore, should the company elect to have an audit performed even if it is not required in terms of the Act, based on the Public Interest Score provisions such audit will be deemed a voluntary audit. In the case of a voluntary audit the requirements in terms of the 2008 Act are far less onerous and the most significant provisions of chapter 3 will not be applicable.


(2)    Amend the Articles of Association (the deemed MOI) by means of a  special resolution registered with the CIPC

It is advisable that in both the following instances a special resolution is passed by the shareholders in order to remove the requirement  regarding the appointment of an auditor from the company’s Articles of  Association:

i.    All companies which are still in the process of formalising their MOI before the expiration of the transition period; and
ii.    Companies where the old Memorandum and Articles of  Association will be deemed the MOI after the transition period.

It is important to note that in both instances (i) and (ii) above the required resolution needs to be taken before the company can exercise any of the following options:

i.    Voluntary audit (i.e. not statutory in terms of Chapter 3 of the Act);
ii.    Independent review; or
iii.    Compilation (in the case of owner-managed businesses)

FAQ 3: What are the risk(s) for me as a director for not putting in place an MOI?

As mentioned in FAQ 1, your company is allowed to use its old Memorandum and Articles of Association, so there are no implicit risks for you as a director of the company. Note, however, that in this case the company will be using an MOI (in terms of the old Act) and that you will not be certain which provisions apply and which are deemed void.

Theoretically there is also no risk for third party claims against a company for not having an MOI. However, because the directors might not always be sure what their responsibilities are in view of the fact that certain provisions are contained in the Act and not in the MOI (old Memorandum and Articles), they might incur liability in instances of non-compliance.

Considering what has been explained above we urge our clients not to use their existing Memorandum and Articles of Association but rather to get their MOI in place as required by the 2008 Act, as soon as possible.  Ultimately the costs saved by not doing so are just not worth the risk for both you and your company.

Because we have cooperation agreements with leading law firms we are well-positioned to assist you with the drafting of you company’s new Memorandum of Incorporation (MOI). We offer this service in the knowledge that the product that we will be providing to your company will meet the highest standards of comprehensiveness, accuracy and applicability. These are, after all, the distinctive service qualities that we are committed to.

Please do not hesitate to contact any of our directors should you require a quotation for our assistance in the process of converting to an MOI.


Tax relief on transfer of residential property from a trust or company or close corporation to individuals

In our September 2009 Newsletter we discussed in detail the issue of the tax relief provided by paragraph 51 of the Eighth Schedule to the Income Tax Act whereby companies holding a residence used exclusively for domestic purposes by an individual shareholder or his/her spouse, can liquidate, wind up or deregister tax-free, thereby avoiding the following:

1.    The compulsory annual fee payable to the CIPC;
2.    CGT on disposal of the property to the individual by means of a roll-over (where the tax attributes of the residence in the company’s hands roll over into the hands of a natural person, with the effect that all CGT gains and losses are deferred until subsequent disposal of the residence by the natural person);
3.    The payment of Secondary Tax on Companies (now Dividend Tax), and transfer duty, on disposal of the property.

The abovementioned provision was effective for a period of two years, from 1 January 2010 until 31 December 2011.

On 17 February 2010 it was announced in the 2010 Budget Tax Proposals that paragraph 51 was inadequate and that a “new, more flexible window period is proposed so that these residential property entities are to be liquidated or dissolved with limited compliance and enforcement effort.”

The Taxation Laws Amendment Act Nr. 7, 2010 which was promulgated on 2 November 2010, widened the tax relief in a number of respects through paragraph 51A of the Eighth Schedule to the Income Tax Act. The most significant amendments included the following:

1.    The provisions became applicable to the disposal of a residence from a trust where     a company held the residence, with the shares in the company being held by the trust;
2.    The date for transfer of the property was extended to 31 December 2012.
Further amendments to paragraph 51A were made in the Taxation Laws Amendment Act No. 24, 2011, most of which have been backdated to 1 October 2010. The most significant of these amendments is that the relief is extended to qualifying holiday homes.

There is no simple answer to the question whether you have to transfer a property or not. Each situation has to be evaluated on merit. However, in certain circumstances it will definitely be beneficial to do so.

In order to qualify for the tax relief granted in terms of paragraph 51A it is imperative that the residential property (including a holiday home), be transferred on or before 31 December 2012. It is also a requirement that the entity owning the property (as well as the trust where the shares in the company owning the property are held), must be in the process of deregistration/ liquidation within six months following the disposal of the property.

Time is running out! Should you require any further information about this matter or wish to discuss your specific situation, please do not hesitate to contact:
Boet Lubbe at or Pieter Aucamp at, or call either of them on (021) 840 1600.

Betalingsverwysings vir elektroniese betalings aan die SAID

Ons vind toenemend dat foutiewe betalingsverwysings gebruik word wanneer elektroniese betalings aan die Suid-Afrikaanse Inkomstediens (“SAID”) gemaak word.  Omrede die SAID dan die betaling na die verkeerde belastingtipe allokeer kan daar soms rente en boete gehef word omdat die betaling wat oorspronklik bedoel was, te laat teen die korrekte belastingtipe gemaak word.

‘n Goeie voorbeeld is die geval waar die verwysing vir aangeslane belasting gebruik word wanneer voorlopige belasting betaal moet word.  As die belastingpligtige in daardie stadium geen uitstaande bedrag op sy/haar aangeslane rekening het nie, word die deposito na die belastingpligtige teruggestuur omdat die SAID nie bewus is dat die betaling eintlik vir voorlopige belasting bedoel is nie. Die voorlopige belastingrekening wys dan steeds ‘n uitstaande balans en boete en rente word gehef.

Hieronder is ‘n lys van die verskillende tipes belasting se rekeningname op die banke se internetblaaie en die formaat van die spesifieke  19-karakter betalingsverwysing wat gebruik moet word.

Daar is ook elektroniese betalingsfasiliteite vir Dividendbelasting, Dieselbelasting en Aksyns.

Skakel gerus met ons Belastingafdeling ( indien u meer besonderhede sou benodig.


Payment references for electronic payments to SARS

We are increasingly finding that incorrect payment references are used when electronic payments are made to the South African Revenue Service (SARS). Because SARS then allocates the payment to the incorrect tax type, interest and fines may be imposed as the originally intended payment is made too late against the correct tax type.

A good example is where the reference for assessed tax is used when payment is made for provisional tax. If, at that point in time, the taxpayer does not have an outstanding amount against his/her assessed account, the deposit is returned to the taxpayer since SARS is not aware that the payment is actually intended for provisional tax. The provisional tax account therefore still reflects an outstanding balance, and a fine and interest are imposed.

Following is a list of the account names of the various tax types as they appear on the banks’ internet pages, together with the format of the specific 19-character payment reference that should be used.

There are also electronic payment facilities for Dividend Tax, Diesel Tax and Excise.

Please contact  our Tax Department (,should you require more detail.

U maatskappy en sy Akte van Inlywing soos vereis deur die Maatskappywet nr. 71, 2008

Kragtens die nuwe Maatskappywet (Nr. 71, 2008) moet alle maatskappye hul huidige Akte van Oprigting en Statute (die aanvanklike stigtingsdokumente) vervang met ‘n enkele nuwe dokument, die Akte van Inlywing (hierna afgekort na MOI vir Memorandum of Incorporation). Hierdie MOI moet voor 30 April 2013 by die Kommissie vir Maatskappye en Intellektuele Eiendom (CIPC) geregistreer word.

‘n Paar weke gelede het Aucamp Scholtz Lubbe sy eie MOI-proses geloods om kliënte te help met die opstel en registrasie van die MOI’s sodat aan die vereistes van die Wet voldoen kan word. Op daardie tydstip het ons gereeld dieselfde navrae met betrekking tot die opstel en registrasie van MOI’s van verskillende kliënte ontvang. Ons meen dit is nodig om aan u die nagevorste antwoorde op hierdie ‘Frequently Asked Questions’ (FAQ’s) te verskaf. Ongeag of u reeds begin het om u MOI op te stel of nog worstel met onduidelikhede of vrae in hierdie verband, vertrou ons dat hierdie dokument vir u waardevol en insiggewend sal wees.

FAQ 1: Het ek regtig ‘n MOI nodig of kan ek steeds my aanvanklike stigtingsdokumente (Akte en Statute) gebruik?

Ja, u mag u aanvanklike stigtingsdokumente as MOI gebruik maar daar is betekenisvolle implikasies wat in ag geneem moet word.

Sou ‘n maatskappy besluit om nie ‘n MOI by die CIPC te registreer nie mag hy steeds sy Akte en Statute gebruik. Die bestaande Akte en Statute sal, tot tyd en wyl dit in ‘n MOI omgesit word, geag word die MOI te wees wat deur die 2008 Wet vereis word, selfs na die verstryking van die oorgangstydperk op 30 April 2013. Die maatskappy sal dan steeds ingevolge die bepalings van sy Akte van Oprigting en Statute beheer word maar slegs in dié mate dat hierdie bepalings in ooreenstemming met die 2008 Maatskappywet is.

Kragtens Afdeling 15(1) van die 2008 Wet  sal enige bepaling in die Akte van Oprigting en Statute wat strydig is met die 2008 Wet, geag word ongeldig te wees en sal die bepalings van die 2008 Wet geld. Die maatskappy kan hom dan in die posisie bevind dat hy gedeeltelik deur die bepalings van sy geagte MOI beheer word en gedeeltelik deur die bepalings van die 2008 Wet in sover die bepalings van die MOI ongeldig geag word.

Daar moet verder op gelet word dat alle MOI’s wat voor die afloop van die oorgangstydperk (30 April 2013) voltooi word, teen ‘n verminderde tarief by die CIPC geregistreer kan word. As die MOI egter ná afloop van die oorgangstydperk ingedien word sal die standaardfooi vir registrasie van ‘n MOI gehef word.

FAQ 2: Wat is die implikasies vir die ouditvereistes van my maatskappy as ek nie ‘n MOI het nie?

Kragtens die bepalings van die 2008 Wet kan, met bepaalde uitsonderinge, maatskappye op grond van hul Openbare Belang puntetelling kwalifiseer vir alternatiewe tot ‘n statutêre oudit, d.w.s. óf ‘n onafhanklike oorsig óf, in beperkte omstandighede, ‘n kompilasie. Maar solank ‘n maatskappy se statute spesifiseer dat ‘n ouditeur aangestel moet word, moet die maatskappy ‘n ouditeur aanstel en moet ‘n oudit uitgevoer word kragtens die vereistes van Hoofstuk 3 van die 2008 Wet.  In wese is dit ‘n statutêre oudit met veel strenger vereistes.

Die mees betekenisvolle van hierdie vereistes is Afdeling 90(2)(b)(iv) van die Wet wat bepaal dat, in die geval van ‘n statutêre oudit, geen rekenmeesters- of sekretariële dienste deur die aangestelde ouditeur verrig mag word nie.

Derhalwe, ten einde die toepassing van sekere vereistes van Hoofstuk 3 te verhoed, moet die volgende gedoen word:

(1)    Registreer die nuwe MOI kragtens die 2008 Wet by die CIPC

Dit sal verseker dat die maatskappy alternatiewe tot slegs ‘n oudit (op grond van sy Openbare Belang puntetelling) kan gebruik.

Voorts, sou die maatskappy kies om ‘n oudit te laat doen al word dit nie deur die Wet vereis nie, sal sodanige oudit op grond van die bepalings van die Openbare Belang puntetelling geag word ‘n vrywillige oudit te wees. In die geval van ‘n vrywillige oudit is die vereistes van die 2008  Wet veel minder veeleisend en sal die mees betekenisvolle vereistes van Hoofstuk 3 nie van toepassing wees nie.


(2)    Wysig die Statute (die geagte MOI) by wyse van ‘n spesiale besluit wat by die CIPC geregistreer word.

Daar word aanbeveel dat in albei die volgende gevalle ‘n spesiale besluit deur die aandeelhouers geneem word om die vereiste oor die aanstelling van ‘n ouditeur in die maatskappy se Statute te skrap:

i.    Alle maatskappye wat nog besig is om hul MOI te formaliseer teen die tyd dat die oorgangstydperk verstryk; en
ii.    Maatskappye waarvan die ou Akte en Statute na afloop van die oorgangstydperk geag sal word die MOI te wees.

Dit is belangrik om daarop te let dat in albei gevalle (i) en (ii) hierbo die vereiste spesiale besluit geneem moet word alvorens enigeen van die volgende opsies uitgeoefen kan word:

i.    Vrywillige oudit (d.w.s. nie statutêr kragtens Hoofstuk 3 van die  Wet nie);
ii.    Onafhanklike oorsig; of
iii.    Kompilasie (in die geval van ‘n eienaar-beheerde besigheid).

FAQ 3: Wat is die risiko(s) vir my as ‘n direkteur as daar nie ‘n MOI opgestel word nie?

Soos in FAQ 1 vermeld, word u maatskappy toegelaat om sy ou Akte en Statute te gebruik. Daar is dus nie enige implisiete risikos vir u as direkteur nie. Let egter daarop dat in hierdie geval die maatskappy ‘n MOI kragtens die ou Wet sal gebruik en dat u nie seker sal wees watter bepalings van toepassing is en watter bepalings geag word ongeldig te wees nie.

Teoreties is daar ook geen risiko vir eise van derdepartye teen ‘n maatskappy omdat dit nie ‘n MOI het nie. Dog, omdat die direkteure nie altyd seker mag wees wat hulle verantwoordelikhede is gesien die feit dat sekere bepalings in die Wet vervat is en nie in die MOI (ou Akte en Statute) nie, mag hulle aan aanspreeklikheid blootgestel wees.

In die lig van die bostaande uiteensetting moedig ons ons kliënte aan om nie hul bestaande Akte en Statute te gebruik nie maar om liefs so gou doenlik ‘n MOI op te stel en te registreer, soos deur die 2008 Wet vereis word. Op die duur is die koste wat gespaar kan word deur dit nie te doen nie, eenvoudig nie die risiko wat dit vir u en u besigheid inhou, werd nie.
Omdat ons samewerkingsooreenkomste met toonaangewende regs-firmas het, is ons in ‘n goeie posisie om u te help met die opstel van u maatskappy se nuwe Akte van Inlywing (MOI). Ons bied hierdie diens aan in die wete dat die produk wat ons aan u maatskappy gaan voorsien, aan die hoogste standaarde van omvattendheid, akkuraatheid en toepaslik-heid sal voldoen. Hierdie is, per slot van rekening, die kenmerkende dienskwaliteite waartoe ons verbind is.

Moet nie huiwer om met een van ons direkteure te skakel as u ‘n kwotasie verlang vir ons hulp met die proses om na ‘n MOI om te skakel nie.

Loslitdag-plakkerverkope: ‘n Terugblik

Noem die naam “ouditeur” of “rekenmeester” en mens sien gewoonlik in jou geestesoog ‘n prentjie van ‘n valerige mannetjie of vroutjie, met ‘n bril, weggekruip agter stapels papiere en wetboeke.  Reg?

Wel, as jy vanaf 30 Augustus tot 7 September tussen 07h00 en 08h00 oor een van drie besige verkeersligkruisings in die Helderbergarea gery het, sal jy nou ‘n veel ander beeld van ‘n ouditeur of rekenmeester hê.  Die geleentheid was ons jaarlikse Loslitdag-fondsinsamelingsveldtog in samewerking met Green Spot Marketing en Aanhouwen, ‘n sentrum vir die versorging van verstandelik gestremde volwassenes, geleë in Somerset-Wes. Vir ses dae het ‘n klompie van ons die koue soggens trotseer en die spreekwoord “let your hair down” baie letterlik en met groot entoesiasme toegepas deur die preutse kantoorkapsels te verruil vir helderkleurige pruike en ander interessante hooftooisels, met slegs een gemeenskaplike doel voor oë: Doen wat ookal nodig is om ‘n Loslitdagplakker te verkoop. Vir elke plakker wat verkoop is, is R4 geskenk aan Aanhouwen, ‘n versorgingsentrum wat ons by ASL baie na aan die hart lê en wat ‘n ongelooflike onbaatsugtige diens lewer aan die baie spesiale mense wat daagliks op ‘n konstruktiewe wyse by die sentrum besig gehou word.

Wat maak jy as jy met jou Loslitdagplakkers en muntblikkie in die hand, in stortreën na ‘n stilstaande voertuig draf wat by ‘n rooi verkeerslig staan en die oomblik wat jy jou hand uitsteek om die bestuurder se aandag te trek, die verkeerslig na groen oorslaan en die persoon wegry? Raak moedeloos? Raak ongeduldig? Nooit gesien nie! Ons praat hier van mense wat vele Finrek-eksamens in hulle studentedae oorleef het en die term “vasbyt” met groot sukses kan toepas. Jy vee eenvoudig jou natgereënde spookasem-kapseltjie uit jou oë, gee ‘n ekstra-groot Colgate-glimlag en kry onmiddellik die volgende “slagoffer” in visier.

Was ons suksesvol met ons veldtog?  Vergeleke met die vorige drie jaar se verkope het ons hierdie jaar alle verwagtinge oortref en ‘n allemintige 1074 Loslitdagplakkers verkoop! Hierdie prestasie is gevier met ‘n worsbroodjiebraai op Loslitdag waar ons op die verrigtinge kon reflekteer.  Twee emosies het kop en skouers bo die res uitgestaan: dankbaarheid en nederigheid; omdat ons deel kon wees van so ‘n besielende veldtog waar jy ‘n bietjie van jou tyd kon opoffer om ‘n verskil te maak vir persone wat elke dag, ten spyte van groot struikelblokke, die lewe met passie en met ywer aangryp.

Ons wil graag almal wat bygedra het, hetsy kliënte of nie, hartlik bedank vir hulle ruimhartige ondersteuning van ons veldtog. Dit was vir ons verblydend om te sien dat waar baie mense huiwerig ‘n silwer muntstuk in die blikkie gooi, ons kliënte sonder huiwering ‘n noot of meer deur die gleufie  forseer.  Daarvoor sê ons weer eens baie dankie!

Ons sien julle volgende jaar weer by die verkeersligkruisings in die Helderberg! Tot dan verdwyn ons weer agter die stapels papiere, wetboeke en fatsoenlike kantoorkapseltjies.

Casual day sticker sales in retrospect

Mention the name “auditor” or “accountant” and in your mind’s eye you normally see a drab little man or woman, with glasses, hidden behind stacks of paper and statute books. Correct?

Well, if from 30 August to 7 September between 07h00 and 08h00 you drove through one of three busy traffic light crossings in the Helderberg area you will now have a considerably different image of an auditor or accountant. The occasion was our annual Casual Day fund-raising campaign in cooperation with Green Spot Marketing and Aanhouwen, a centre for the care of mentally handicapped adults, located in Somerset West. For six days some of us braved the cold every morning and literally, and with much enthusiasm, applied the saying “let your hair down”, by exchanging our prim office hairdos for brightly-coloured wigs and other interesting headdress, with only a single common purpose: Do whatever is needed to sell a Casual Day sticker. For each sticker sold R4 was donated to Aanhouwen, a care centre that is very near to our hearts here at ASL and which provides an unbelievably selfless service to the very special people who are daily kept constructively busy at the centre.

What do you do if, with your Casual Day stickers and coin box in hand and in pouring rain, you trot to a stationary vehicle at a red traffic light and the moment you extend your hand to attract the attention of the driver, the traffic light turns green and the person drives off? Become disheartened? Become impatient? That’ll be the day! We are speaking here of people who survived many Accounting exams in their student days and are able to apply the expression “hang tough” with great success. You simply wipe your drenched candy floss hairdo from your eyes, put on an extra-large Colgate smile, and straightaway target the next “victim”.

Was our campaign successful? Compared with the previous three years our sales this year exceeded all expectations and we sold 1074 Casual Day stickers! This achievement was celebrated with a hot dog braai on Casual Day where we reflected on the proceedings. Two emotions stand head and shoulders above the others: gratitude and humility; for having been part of such an inspiring campaign where one could sacrifice some of your time and by so doing make a difference to those who, despite great hurdles, grasp life each day with passion and fervour.

We wish to sincerely thank all who contributed, whether clients or not, for their generous support of our campaign. It was heartening to see that while some people hesitantly deposited a silver coin in the tin our clients unhesitatingly forced a note or two through the slit. For this, we once again say thank you!

We’ll see you again next year at the traffic light crossings in Helderberg. Until then we once again disappear behind the stacks of paper, statute books and respectable  office hairdos.

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