Reinstating company in conveyancing matters

CIPC will only re-instate a company or close corporation if: 

– The company or close corporation was in business at the time of deregistration (sufficient documentary evidence in the form of bank statements for a period of six months before and six months after deregistration is required). 

– Immovable property is registered in the name of the deregistered business; or 

– The court issued an order re-instating the company or close corporation. 

– If none of the above can be proven by the documentary evidence, the CIPC will not re-instate the company or close corporation and it is advised that a new company be registered. 

Who may apply for re-instatement? 

In terms of section 82(4) of the Companies Act of 2008, any interested person may apply to re-instate a company or close corporation. Therefore, for example the company or close corporation itself may apply for re-instatement or any of its creditors or any other person that needs to have the company or close corporation re-instated in order to take further legal action against the company or close corporation. 

If the re-instatement application is brought by any person, other than the company or close corporation or its duly appointed representative, then it is advisable to approach a court for an order of re-instatement. In terms of Companies Regulation 40(6) the company or close corporation is only fully re-instated (or its legal personality restored), once all outstanding annual returns are filed. It is only the company or close corporation or its duly appointed representative that can file the annual returns.

Should you require more information, please do not hesitate to contact us.

Allen West
TONKIN CLACEY PRETORIA 
012 346 1278

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