ENHANCED FUNCTIONALITY ON ELECTRONIC CHANGE OF COMPANY DIRECTORS (CM29)

Pretoria, Friday, 1 October 2010. The Companies and Intellectual Property Office (CIPRO) today issued a notification to all company directors to update their details on the CIPRO website.

Pursuant to the review of the electronic lodgement of change of directors (CM29) functionality, the enhanced functionality has been developed and will be ready officially from 08 October 2010 for full implementation. As the first phase of the roll out of the functionality it is essential for all companies to update their directors' details as of 1 October 2010. The second phase will entail the rollout of the enhanced CM29 functionality on 8 October 2010.

Mr Lungile Dukwana, Acting Chief Executive Officer said: "CIPRO is committed to mitigate unauthorised change of directors on its database and to establish improved communication between CIPRO and company directors and officers an enhanced functionality is being implemented. Furthermore, CIPRO aims to pro-actively communicate with relevant company directors and officers to encourage good corporate governance, hence the implementation of the enhanced functionality in affecting changes to company directors."

The enhanced functionality will require that e-mail communication be sent to the relevant directors and officers with a code to unlock the company directors' profile. Therefore, it is of utmost importance that contact details of company directors and officers are correct and valid. Although the information is non-statutory, it is however necessary for pro-active notification, hence CIPRO requests that directors and relevant officers update these details urgently on the CIPRO website. That can be done under "Companies" option on the website.

It is advisable that company directors and officers update these details themselves to ensure correctness and validity. These contact details will not form part of the public disclosure process nor the data sales process; they will be kept confidential by CIPRO to avoid unnecessary inconveniences.

Although the one day password provided to CIPRO customers through the customer verification process remains valid, the new code issued to relevant company directors and officers will serve to notify them directly of any intended change on company directors. Therefore, company directors and officers that makes the code available to their accounting officers or any other person to affect changes on the company's behalf have to ensure that the person has the relevant mandate from the company.

The enhanced functionality on the electronic lodgement of change of company directors will improve security on directors' details, especially amendments where there is no mandate.

Statement issued by Dr Elsabé Conradie CIPRO, October 3 2010

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