Reckless trading penalties suspended to help deal with Covid-19 fallout
CIPC will not act against companies temporarily insolvent due to the national disaster
Provisions in the Companies Act meant to prevent reckless trading will not be invoked during the national lockdown, giving companies the leeway to survive the lockdown, parliament heard on Tuesday.
The Companies and Intellectual Property Commission (CIPC) told parliament’s trade & industry portfolio committee during an online briefing it will not invoke the reckless trading provisions if it has reason to believe that companies are temporarily insolvent due to the national disaster. The CIPC administers the Companies Act and is responsible for the registration of companies...