Home Accounting and Auditing New business rescue filing proceedings for CIPC

New business rescue filing proceedings for CIPC

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The Companies and Intellectual Property Commission (CIPC) has amended its filing procedure for business rescue (Practice Note 3 of 2019 replaces Practice note 3 of 2014 in its entirety) and applies to companies and close corporations.

The following forms are to be completed and submitted via email to businessrescue@cipc.co.za.

Notice to start business rescue proceedings

Documents to be submitted:

CoR123.1 (duly completed including customer code and signature of an active director/member as per the CIPC register)

  • Certified ID copy of the owner of the customer code
  • Certified copy of the ID of the director/member undertaking the sworn statement
  • Sworn statement containing the following:
  • Full name, surname and ID number of person undertaking the sworn statement
  • Reasons for resolution to start business rescue proceedings
  • Physical address where most business activities in current financial year were undertaken
  • All legal proceedings the company of CC is involved in (especially proceedings against the company or CC), the nature of the legal proceedings and their status
  • Letter from the business on its letterhead stating:
  • PI score breakdown and total (as indicated in Companies Regulation 26(2)
  • Primary business activities (industry as per SIC Code version 7 issued by SARS) undertaking in the current financial year
  • Nomination of Business Rescue Practitioner (BRP) with declaration of his independence
  • Resolution by the company of CC to start business rescue proceedings.

It should be noted that the date of the filing will be the date on which of the minimum legal requirements, completed CoR123.1, sworn statement and resolution are submitted to the CIPC.

Business Rescue Status Report (Form CoR 125.1)

Documents to be submitted:

  • CoR 124.1 (duly duly completed including customer code and signature of BRP)
  • Progress report on the progress of the business rescue proceedings as required in terms of section 132(3) of the Companies Act.

Notice of Termination of Business Rescue Proceedings (Form CoR125.2)

Terminations of business rescue occur when there is no reasonable prospect of rescue, where the company has been placed into provisional or  final liquidation, or where the business rescue plan was not adopted in terms of section 153(5) of the Companies Act, and no further action was taken (this being confirmed by minutes of the relevant meeting).

Documents to be submitted:

  • CoR 125.2 (duly completed including customer code and signature of BRP)
  • The grounds on which the proceedings are terminated (which may be stated either on CoR 125.2 or on a letterhead which is attached to the aforementioned form)
  • Confirmation of the grounds of termination.

Notice of Substantial Implementation of Business Rescue Plan (Form CoR 125.3)

Documents to be submitted:

  • CoR 125.3 (duly completed including customer code and signature of BRP)
  • Progress report on the progress of the business rescue proceedings as required in terms of section 132(3) of the Companies Act.
  • Public Interest (PI) Score breakdown and total PI Score (as indicated in Companies Regulation 26(2) as end of the implementation of the business rescue plan.

Court orders relating to business rescue proceedings

All court orders relating to business rescue proceedings and BRPs must be submitted to businessrescue@cipc.co.za or alternatively corporatelegalservices@cipc.co.za.

Court orders should be accompanied by a covering letter/email indicating the contact details and customer code of the person submitting the court order to the CIPC.