Director duties under fire: CIPC’s new guideline means serious business for accountants
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The CIPC just released Guideline 1 of 2025, and it’s not just aimed at directors — it puts accountants squarely in the spotlight too.
📌 First, what are a director’s duties?
In terms of the Companies Act 71 of 2008, directors must:
Act honestly and in the company’s best interests
Avoid personal gain or conflicts of interest
Prevent reckless trading and ensure financial solvency
Maintain proper records and internal controls
Exercise reasonable care, skill, and diligence
😬 What happens if they don’t?
Non-compliance can now trigger:
Compliance notices
Applications to declare directors delinquent
Referrals to professional bodies (yes, even for accountants and company secretaries)
🚨 Why this is important to YOU
You're not just crunching numbers. You're inside the engine room of your client's business — and often, the first person to notice financial red flags or governance slip-ups. Here’s where it gets real:
If you ignore shady director behavior, or just quietly keep preparing the books, you could be seen as complicit.
If a company collapses or a director gets exposed, regulators will ask: “Why didn’t the accountant say anything?”
Your reputation, license, and livelihood could be on the line.
But here’s the good news: this is a chance to step up as a strategic advisor, not just a number-cruncher.
💰 Turn compliance into cash: Offer governance reviews, board advisory, and director training as billable services.
🔒 Protect yourself: Document your advice. Raise concerns. Get it in writing.
🧠 Be the expert your clients count on: Directors don’t know these laws — but you do. That’s your edge.
