ASIC prosecutes ten companies for failing to lodge financial reports

ASIC prosecuted ten companies between 1 January 2021 and 30 June 2021 for failing to comply with their obligations to lodge financial reports.

Certain types of Australian companies are required by law to lodge financial reports with ASIC within a specified period after the end of their financial year. Some companies are also required to lodge financial reports every half year. Accurate and timely financial reporting allows shareholders, creditors and the public to make informed decisions about companies.

ASIC took action against the following companies:

  • Bargo Collieries Pty Ltd ACN 000 970 276 was convicted and fined $7,000 for failing to lodge annual financial reports between 2015 and 2019 (inclusive);
  • Envisager Securities Ltd ACN 167 567 482 was found guilty and placed on a bond and required to be of good behaviour for failing to lodge annual financial reports for 2018 and 2019;
  • Gasfields Ltd ACN 107 708 305 was convicted and fined $3,000 for failing to lodge their annual financial report for 2019 and half-year report ending 31 December 2019;
  • Hail Creek Coal Pty Ltd ACN 080 002 008 was found guilty without conviction and placed on a bond and required to be of good behaviour for lodging their annual financial report for 2017 late;
  • Harsco Metals Australia Holding Investment Co. Pty Ltd ACN 144 918 598 was found guilty without conviction and placed on a bond and required to be of good behaviour for failing to lodge annual financial reports for 2015 and 2016;
  • Konica Minolta Business Solutions Australia Pty Ltd ACN 001 065 096 was found guilty without conviction and placed on a bond and required to be of good behaviour for failing to lodge annual financial reports between 2017 and 2019 (inclusive);
  • Oceania Resources Pty Ltd ACN 604 957 093 was convicted and fined $7,000 for failing to lodge annual financial reports for between 2015 and 2019 (inclusive);
  • Redbank Energy Ltd ACN 116 665 608 was convicted fined $9,000 for failing to lodge annual financial reports for 2018 and 2019 and the half yearly report for the half-year ended 31 December 2019;
  • Vocational Education, Training and Employment Australia Ltd ACN 603 739 117 was convicted and fined $13,500 for failing to lodge annual financial reports between 2016 and 2018 (inclusive); and
  • Wolf Petroleum Ltd ACN 116 249 060 was convicted and fined $12,000 for failing to lodge annual financial reports for 2018 and 2019 and failing to hold an annual general meeting or report to its members for that same period.

ASIC will continue to prosecute companies that fail to comply with their financial reporting obligations.

Background

Section 292 of the Corporations Act requires all disclosing entities, public companies, large proprietary companies, and registered schemes to prepare financial reports each financial year.

Section 319 of the Corporations Act requires a disclosing entity and registered scheme to lodge the complete financial reports within three months after the end of the financial year. All other entities are required to lodge their financial reports within four months after the end of the financial year.

Section 302 of the Corporations Act requires disclosing entities to prepare financial reports each half-year.

Section 320 of the Corporations Act requires a disclosing entity to prepare or obtain a report for a half-year and lodge the report with ASIC within 75 days after the end of the half-year.

/Public Release. This material comes from the originating organization/author(s)and may be of a point-in-time nature, edited for clarity, style and length. The views and opinions expressed are those of the author(s).View in full here.