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interest points. Companies that use external accountants to do their books only
have to undergo annual auditing if they score 350 public interest points or more.

A company may voluntarily elect, either by a directors’ resolution or a shareholder
resolution depending on its MOI, to have its annual financial statements audited
or include an express audit requirement in its MOI.

In contrast, some private companies may purely be required to have their
annual financial statements independently reviewed. This is the case for private
companies whose public interest score in a specific financial year is at least 100
(but less than 350) and whose annual financial statements for that year were
independently compiled, as well as companies whose public interest score in Commercial
that financial year is less than 100.
It is important to also note the provisions of section 30(2A) of the Act, which
provides an exemption to both audit and independent review. Should every
person who is a shareholder of a company also be a director of that company,
such company is exempt from the requirements to have its annual financial
statements audited or reviewed, provided it does not fall into a class that is
specifically required to do so in terms of the Act or other legislation or any
agreement to which it is a party. If a company is not required to be audited but
is not exempt in terms of section 30(2A), then its annual financial statements
must be independently reviewed.

What should be clear from the above is that not all companies need to be
audited or possibly even independently reviewed. Our advice is to consult an
attorney or auditor to help you obtain certainty about your auditing requirements
if you are unsure.

When does my family trust terminate?

Linki Scholtz
July 2018

“I have established a family trust for estate planning purposes to make sure
my children are looked after when I pass away. I was wondering though if the
trust can be terminated after my death, and if so, when? I wouldn’t like all my
planning to be for nothing because the trust just ended.”
In South African law one must distinguish between two general types of trusts,
namely a testamentary trust (established in your will) and an inter vivos trust,
established in terms of a trust deed. The latter type includes your family trust.
Both types of trust do not ‘die’ or terminate because of disuse. In general, a

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