16.4.1 INTRODUCTION
External companies are governed by s 23 which sets out certain disclosure and filing requirements for any foreign company that carries on business or non-profit activities in the Republic. This is so that these companies can be identified and traced for the purpose of legal proceedings and also enables the CIPC to monitor their activities. There are very few provisions of the Act that apply to external companies as most have been abolished. In particular most of the accountability obligations of external companies have been abolished. It is most surprising that there are no financial reporting obligations, it is not necessary to prepare financial statements or to have any financial statements audited or independently reviewed.