Companies Act, 2008 (Act No. 71 of 2008)

Chapter 2 : Formation, Administration and Dissolution of Companies

Part C : Transparency, accountability and integrity of companies

27. Financial year of company

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(1)A company must have a financial year, ending on a date set out in the company’s Notice of Incorporation, subject to any change made in terms of subsection (4).

 

(2)The first financial year of a company—
(a)begins on the date that the incorporation of the company is registered, as stated in its registration certificate; and
(b)ends on the date set out in the Notice of Incorporation, which may not be more than 15 months after the date contemplated in paragraph (a).

 

(3)The second and each subsequent financial year of a company—
(a)begins when the preceding financial year ends; and
(b)ends on the first anniversary of the date contemplated in paragraph (a), unless the financial year end has been changed as contemplated in subsection (4).

 

(4)The board of a company may change its financial year end at any time, by filing a notice of that change, but—
(a)it may not do so more than once during any financial year;
(b)the newly established financial year end must be later than the date on which the notice is filed; and
(c)the date as changed may not result in a financial year ending more than 15 months after the end of the preceding financial year.

 

(5)Despite subsection (2)(b) or (3), the financial year of a company that has changed the date contemplated in subsection (1) ends on the date as changed.

 

(6)[Section 27(6) deleted by Act No. 3 of 2011]