CIPRO to transform into the Companies and Intellectual Property Commission

Pretoria, 8 February 2011 - A new commission will be put in place to deliver against the new Companies Act mandate which comes into effect in April 2011. The new commission will combine the Office of Companies and Intellectual Property Enforcement (OCIPE) and Companies and Intellectual Property Registration Office (CIPRO).

The ultimate goal of this reform is to ensure that the regulatory framework for enterprises of all types and sizes, promotes growth, employment, innovation, stability, good governance, confidence and international competitiveness.

The Act provides for the transformation of CIPRO into a newly established independent organ of state, with significantly expanded functions and powers, to be known as the Companies and Intellectual Property Commission (Companies Commission). Administrative functions currently assigned to the Minister under the Companies Act, are to be de-politicised and placed within the jurisdiction of the Commission. The Commission will therefore act as an autonomous statutory body outside the public service and will be lead by a commissioner and deputy commissioner.

Mr Lungile Dukwana - CIPRO Acting CEO explained: "We have been preparing for the joining of the Companies Commission for some time. It is of utmost importance that a smooth transition takes place, and has therefore put in-place a change agent network team (CAN) to facilitate change management requirements, and ensure that service to our customers remains constant and uninterrupted."

Main Objectives

The following are the main objectives of the new commission:

• Registration of companies, external companies and co-operatives
• Registration of intellectual property rights
• Maintenance of information on its registers
• Promotion of education and awareness of company and intellectual property law
• Promotion of compliance with relevant legislation
• Efficient and effective enforcement of all relevant legislation

Additional duties

The Act also introduces a number of new responsibilities, which CIPRO currently do not perform, but will be performed by the new commission. These include:

• Enforcement of the Act - pro-active enforcement measures by way of compliance notices served on defaulting companies.
• Investigations - investigation of all complaints and contraventions of the Act.
• Inspections - proactively investigate the affairs of companies.
• Dispute resolution - promote dispute resolution through the Companies Tribunal or any other similar accredited agency.
• Reporting and research - report to and advise the Minister on matters of national policy relating to company and intellectual property law and continuously review all relevant legislation, regulations and financial reporting standards.
• Public education - promote public awareness of company and intellectual property law matters.

It should be noted that new close corporations will not be registered after the act becomes enforceable, but that those existing on the Close Corporations Register, prior to the implementation date of the Act, will be maintained.

Statement issued by Dr. Elsabé Conradie, CIPRO, February 9 2011

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