New requirements on Company owners to disclose Beneficial Ownership Information

Guy Dakin

Companies will have to provide their beneficial ownership information to CIPC from 1 April 2023 as part of an initiative to increase transparency to identify individuals who directly or indirectly ultimately:

– owns a company; or
– exercises effective control of a company through shareholding held in the company;
– exercising control over the voting rights relating to the shares of a company;
– exercising control of the right to appoint or remove members of the board of directors of a company
– holding beneficial interest in the company via the ability to exercise control through a chain of ownership or control of a holding company of a company;
– the ability to exercise control ( including through a chain of ownership or control) via a juristic person other than a holding company or a body of persons corporate or
– unincorporate or acting on behalf of a partnership or acting in terms of a trust agreement; and
– the ability to materially influence the management of a company.

The regulations relating to the above requirements are currently in draft format awaiting promulgation. There is therefore uncertainty relating to the format and manner in which the required additional information is to be submitted to CIPC.   Company owners should understand the requirements and initiate an exercise to ascertain details relating to beneficial owners and understand their duties and responsibilities in disclosing the correct beneficial ownership information.