Tony Clarke, MD of Rawson Properties, has drawn attention to announcements which could have serious effects on the ownership and/or transfer of properties.
The Companies and Intellectual Property Commission (CIPCO, formerly known as CIPRO) has revealed that recently over one million companies were deregistered or are in the process of being deregistered by them for failing to submit their annual returns.
Clarke said that a significant number of SA properties are held in companies and that quite often this company has been set up only for this reason.
If, due to negligence or some other cause, the property holding company has been deregistered by CIPCO, it will have immediately lost its status as a legal entity.
This, says Clarke, could mean that any agreements entered into by the company while it was registered are possibly invalid and open to questioning.
Furthermore, the company can no longer enter into any legal agreements such as the buying, selling or transfer of property.
Worse still, all the companys assets (including the property) pass to the State and the 'owners' (no longer recognised in law) may have to get State permission to work with or dispose of them.
Clarke advises all who hold property in a company and who have any doubts about whether their corporate governance or judiciary duties have been in complete compliance with the law to transfer the property to a natural person.
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com.
