Companies Act, 2008 (Act No. 71 of 2008)RegulationsCompanies Regulations, 2011Chapter 2 : Formation, Administration and Dissolution of CompaniesPart B : Incorporation and Legal Status of Companies19. Reckless trading or trading under insolvent circumstances |
See schedule 22
| (1) | The Commission may issue a notice to show cause contemplated in section 22 (2) in Form CoR 19.1, which must clearly set out the grounds upon which the Commission has formed the requisite belief that the notice is justified. |
| (2) | If a person who has received a notice in Form CoR 19.1 provides information to the Commission within 20 business days after receiving the notice, the Commission, after considering that information, must issue either— |
| (a) | a notice in Form CoR 19.2 accepting the information, and confirming the company's right to continue carrying on its business activities; or |
| (b) | a compliance notice, as contemplated in section 22 (3). |