COMPANIES have to ensure they keep their records properly as the new Companies Act puts strict regulations on the management of records.
Divisional manager at Metrofile Johannesburg Anthony Eedes said the way a company managed its records and documents pertaining to its business and customers, would be under the spotlight.
He said the Companies Act 71 of 2008 clearly defines the form and standards for company records as well as location, how they should be accessed, as well as providing a host of retention requirements for these documents, and whether or not, they are allowed to be stored electronically.
"While the Companies Act pertains to so much more than just good record keeping, it also highlights a set of good guidelines for a company to follow when trying to better understand the legalities around the document retention and retrieval," Eedes said.
He said the act clearly states that is an offence for a company with an intention to deceive or mislead any person to firstly fail to keep accurate or complete accounting records and secondly to keep records other than in the prescribed manner and form.
"Businesses accumulate data and much of this is on their interactions with their customers.
"It is quintessential for them to ensure that it is firstly legal for them to store this information and secondly to only use it for its intended purpose, as is now clarified by the Protection of Personal Information Act that is in the process of being finalised," Eedes said.
Eedes said the Companies act further states that it is an offence to falsify any of the company's records or permit any person to do so or for any person to falsify its accounting records.
"It is a fine line to tow. We all need to hold onto business records for specific legal requirements, however it is in the nature in which we hold onto these documents, how they are safeguarded and ultimately, who has access to them that has to watched very closely," he said.
"It is often the safest alternative for business to take these documents offsite and have them indexed according to a series of unrelated codes to ensure their safety so they do not fall into the wrong hands."
Call for firms to abide by new act
COMPANIES have to ensure they keep their records properly as the new Companies Act puts strict regulations on the management of records.
Divisional manager at Metrofile Johannesburg Anthony Eedes said the way a company managed its records and documents pertaining to its business and customers, would be under the spotlight.
He said the Companies Act 71 of 2008 clearly defines the form and standards for company records as well as location, how they should be accessed, as well as providing a host of retention requirements for these documents, and whether or not, they are allowed to be stored electronically.
"While the Companies Act pertains to so much more than just good record keeping, it also highlights a set of good guidelines for a company to follow when trying to better understand the legalities around the document retention and retrieval," Eedes said.
He said the act clearly states that is an offence for a company with an intention to deceive or mislead any person to firstly fail to keep accurate or complete accounting records and secondly to keep records other than in the prescribed manner and form.
"Businesses accumulate data and much of this is on their interactions with their customers.
"It is quintessential for them to ensure that it is firstly legal for them to store this information and secondly to only use it for its intended purpose, as is now clarified by the Protection of Personal Information Act that is in the process of being finalised," Eedes said.
Eedes said the Companies act further states that it is an offence to falsify any of the company's records or permit any person to do so or for any person to falsify its accounting records.
"It is a fine line to tow. We all need to hold onto business records for specific legal requirements, however it is in the nature in which we hold onto these documents, how they are safeguarded and ultimately, who has access to them that has to watched very closely," he said.
"It is often the safest alternative for business to take these documents offsite and have them indexed according to a series of unrelated codes to ensure their safety so they do not fall into the wrong hands."
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