Practice Number Policy

Dear SAIPA Member

On 11 January 2006, The Close Corporations Amendment Act of 2005, Act No. 25 of 2005 became effective. This amendment changed the provisions for the qualification of an accounting officer. Essentially, the amendment redefines the meaning of ?firm? and now provides that a CC may be appointed as the accounting officer of another CC.

This amendment creates an amount of uncertainty when it comes to membership of a legal entity (especially CC's who have been appointed as an accounting officer), of an Institution such as SAIPA. The uncertainty results from different interprettions of sections 60(1), section 60(4)(a)(i), and section 60(4)(a)(iv).

To err on the safe side SAIPA interprets the relevant provisions to mean that SAIPA should only issue practice numbers to members/associate members of SAIPA. SAIPA therefore will only issue a practice number, for purpose of section 60(4)(a)(iv), to a Close Corporation that is an associate member of SAIPA.

The attached policy document provides guidance on how a Close Corporation should apply for a practice number from SAIPA.

Members acting in their individual capacity are not required to apply for a practice number to act as an accounting officer; such members should still use their SAIPA member number to accept appointments as accounting officers.

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