By: Natasha Archary
The Young Women in Business Network (YWBN) has been given 21-days to pay back investors after failing to comply with regulations.
Earlier this year Nthabeleng Likotsi, the founder of YWBN shared with Gugulethu Mfuphi her plans to officially be the first woman to own a mutual bank in SA after being approved by the SA Reserve Bank.
Her plans were short-lived as the Companies Tribunal of SA has given the co-operative financial institution, an extended 21-days to pay back money raised in its ‘Own the bank’ share scheme.
YWBN had applied to the tribunal to ask for it to set aside the Inspectors Report and Compliance Directive from the companies and intellectual property commission (CIPC).
The expectation was for them to comply with the provisions of the companies act 71 of 2008.
YWBN took money from investors between June and July 2021 without lodging a prospectus with the registrar of companies (CIPC). Nthabeleng seemed to request more time to lodge the application for a prospectus to be registered but CIPC had already made a ruling that ordered them to reverse the transactions.
Nthabeleng opened up a share scheme to the public from as little as R10.
However, the tribunal found that the mutual bank was non-compliant with various sections of the Co-operatives Act and contravenes section 99.
“Reverse any share transaction issued between 1-30 June 2021 and repay all the investors who took up shares based on the circulated prospectus; b. create an indivisible reserve; c. capitalise membership fees; and d. comply with section 29(b) going forward,” read the directive from the CIPC.
Speaking to Zwelakhe Mnguni, Chief Investment Officer and Co-Founder at Benguela Global Fund Managers, Gugulethu Mfuphi discusses the possible outlook for YWBN: