South Africa’s CIPC introduces changes to the Companies Act, mandating beneficial ownership disclosures. Companies must submit and maintain beneficial ownership information to combat money laundering and terrorism financing.
Who’s Affected:
- Individuals with over 5% ownership or control of a company.
- Applies to entities formed before May 24, 2023, for their annual returns from that date.
- Beneficial owners are those with 5% or more ownership or effective control.
Types of Beneficial Ownership:
- Holding securities interest.
- Controlling voting rights.
- Appointing/removing board members.
- Influencing a company’s management.
- Being a state-owned company unless exempt.
Documents Required:
- Filing party needs a certified ID/passport.
- Companies must annually file a Securities Register containing shareholder information.
- Affected companies must maintain a Beneficial Interest Register.
- Disclosure form should cover complex ownership structures.
Affected vs. Non-Affected Companies:
- “Affected companies” are regulated or private firms controlled by them.
- They must file a Beneficial Interest Register.
- Others file a Securities Register, including beneficial owner details.
Exemptions:
- Affected companies listed on local stock exchanges can skip filing if data is maintained there.
- Applies to related entities under the affected company.
Nonprofit Companies:
- Nonprofit membership organizations must file a register of members.
- Those exercising control must be included in the filing.
Updating Changes:
- Companies must update their Beneficial Ownership Register within 10 days of any changes.
For additional information with respect to this Alert, please contact the following:
Email: info@innovativecfo.co.za or Call 079 662 8968