PIC and Ayo taken aback by compliance notice from CIPC
Asset manager says it is seeking legal advice as commission's action was contrary to Promotion of Administrative Justice Act
The Public Investment Corporation (PIC) said on Tuesday that it had asked its lawyers for advice on how to respond to a compliance notice received from the Companies and Intellectual Property Commission (CIPC) in which it is instructed to recover R4.3bn it invested in Ayo Technology Solutions. It is unusual for the CIPC, which administers the Companies Act, to issue a compliance notice of this sort as its activities are normally confined to the administrative compliance requirements of the act such as company registration requirements and annual fees. The CIPC said in the notice that it believed that the PIC’s directors contravened the act as company directors were compelled to perform their function in “good faith and for proper purpose in the best interests of the company and with a degree of care, skill and diligence”. This had not been the case when the PIC’s directors invested R4.3bn in a company with a historical record of turnover disproportionately so much smaller. Both the ...
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