Tag archives: Solvency and liquidity test

New CIPC recommendation: Disclose your company’s solvency and liquidity tests in your AFS

By Raghemah Hendricks on May 5, 2021 Posted in General

A trend has arisen, which has not gone unnoticed by the CIPC, where companies are failing to conduct the solvency and liquidity test in accordance with section 4 of the Companies Act, 2008, for instance when declaring a dividend. A failure to do so can have personal consequences for directors. The CIPC reviews annual financial … Continue reading

Directors beware: The CIPC has not temporarily softened the solvency and liquidity test

By Alan Bryson and Shawn Barnett (ZA) on April 9, 2020 Posted in General

The content of a recent Companies and Intellectual Property Commission (CIPC) practice note in which the CIPC committed not to exercise its powers relating to temporarily insolvent companies must not be confused with the solvency and liquidity test. The board of a company is still obliged to fully apply the solvency and liquidity test wherever … Continue reading