The Companies and Intellectual Property Commission (CIPC) has introduced additional security measures for director amendments, requiring confirmation from a majority of the board through a one-time password (OTP) for newly appointed directors.
The updated process, announced in CIPC Customer Notice 51 of 2026, dated 16 October 2026, forms part of the CIPC’s efforts to strengthen the security and integrity of company records and prevent unauthorised changes to director information.
For companies, directors and professionals responsible for company secretarial filings, this change introduces an important additional step in the director appointment process.
What has changed?
Under the updated process, a majority of the board must confirm each newly appointed director using an OTP within the timeframe prescribed by the CIPC.
The process is being introduced in phases, with the initial phase applying to small companies where the directors and shareholders are the same individuals.
The CIPC has indicated that the application process and system screens may differ from the previous process as the new security controls are implemented.
Importantly, if the required board members do not complete the OTP confirmation within the prescribed timeframe, the application will be terminated. CIPC notice does not specify the exact timeframe for completing the confirmation.
This means that submitting a director amendment application will no longer necessarily be the final step. Timely cooperation from the relevant directors will be essential to completing the process successfully.
Why is the CIPC implementing this change?
Director information recorded with CIPC is an important part of a company’s official corporate records. Unauthorised changes to this information can create significant administrative, operational and compliance risks.
The new OTP confirmation requirement is intended to strengthen verification procedures and reduce the risk of fraudulent or unauthorised director amendments.
CIPC has also reiterated that knowingly providing false or misleading information for fraudulent purposes constitutes an offence under section 214(1)(b) of the Companies Act, 2008.
Although the additional verification step may require more coordination, it is intended to provide an additional safeguard for companies and their stakeholders.
How will this affect companies and directors?
The updated process has practical implications for companies, directors, accountants and company secretarial service providers.
- Director participation is essential
A director amendment application may require action from multiple board members. Directors should therefore be informed of the proposed amendment before the application is submitted and advised to respond promptly when an OTP confirmation is requested.
- Contact details must be up to date
Outdated contact information may delay the confirmation process. Companies should ensure that the relevant directors’ contact details recorded with the CIPC are accurate and that directors can receive and respond to the required OTP communications.
- Applications may be terminated
Failure to obtain the required confirmations within the applicable timeframe will result in the application being terminated. This could delay the updating of the company’s official records and require further administrative steps.
- Compliance records remain important
Companies should maintain appropriate supporting documentation for director appointments, including the relevant board resolutions and other required records. The OTP process does not replace the company’s underlying governance and record-keeping obligations.
What should your company do?
To minimise delays and ensure a smoother director amendment process, we recommend the following:
- Verify contact details: Check that the relevant directors’ contact details recorded with the CIPC are current.
- Prepare directors in advance: Inform the board of the proposed amendment and explain that OTP confirmation may be required.
- Respond promptly: Ensure that the relevant directors complete the confirmation within the timeframe communicated by the CIPC.
- Maintain supporting documentation: Keep the relevant board resolutions and supporting records on file.
- Allow for additional processing time: Build the OTP confirmation step into your internal deadlines and company secretarial planning.
- Monitor further CIPC announcements: The process is being introduced in phases, and further changes may affect additional categories of companies.
How can Acredo Accounting assist?
At Acredo Accounting, we understand that keeping company records accurate and compliant is essential to the effective administration of your business.
Our team can assist with director amendment applications, the preparation and maintenance of supporting documentation, and guidance on the practical requirements of the updated CIPC process.
We encourage clients planning director appointments or changes to notify us in advance so that the necessary preparations can be made and avoidable delays can be minimised.
Need assistance with a director amendment?
Contact Acredo Accounting to discuss your company’s requirements and how we can assist you with the process.
Please note: This article is intended for general informational purposes and is based on the CIPC update described above. Companies should refer to the applicable CIPC notice and current filing instructions for the requirements relevant to their circumstances.