ASIC prosecutes ten companies for failing to lodge financial reports 5 August

ASIC successfully prosecuted ten companies in the period 1 January 2022 and 30 June 2022 for failing to comply with their obligations to lodge financial reports with ASIC.

ASIC took action against the following companies:

  • Blackgold International Holdings Pty Ltd (ACN 145 095 478), which was convicted and fined $7,500 for failing to lodge four annual financial reports between 2018 and 2021,
  • Strathfield Group Limited (Deregistered) (ACN 053 687 728), which was convicted and fined $30,000 for failing to lodge two annual financial reports between 2019 and 2020 and $40,000 for failing to comply with an ASIC Notice,
  • Weed Australia Ltd (ACN 617 827 764), which entered into a 12-month good behaviour bond with a recognisance of $1,000 for failing to lodge three annual financial reports between 2019 and 2021,
  • Onslow Resources Pty Ltd (ACN 140 317 264) (formerly Onslow Resources LTD), which was convicted and fined $22,500 for failing to lodge three annual financial reports between 2018 and 2020,
  • Ubecorp Limited (ACN 060 938 552), which was convicted and fined $15,000 for failing to lodge three annual financial reports between 2019 and 2021,
  • McGrath Saleco Limited (ACN 608 153 797), which was convicted and fined $40,000 for failing to lodge four annual financial reports between 2017 and 2020,
  • Peel Valley Group Pty Ltd (ACN 119 963 174), which was convicted and fined $3,000 for failing to lodge three annual financial reports between 2017 and 2019,
  • Winha Commerce and Trade International LTD (ACN 605 884 848), which was convicted and fined $30,000 for failing to lodge three annual financial reports between 2019 and 2021,
  • Animoca Brands Corporation Limited (ACN 122921813), which was convicted and fined $30,000 for failing to lodge three annual reports between 2020 and 2022 and $20,000 for failing to lodge two half year financial reports between 2020 and 2021 (see 22-168MR),
  • Frontier Diamonds LTD (ACN 616 232 556), which was convicted and fined $20,000 for failing to lodge one annual financial report for 2020 and one half year financial report for the half year ending 31 December 2019.

These financial reports provide shareholders, creditors and the public with important information, enabling them to make informed decisions when dealing with these companies.

The companies were prosecuted summarily in Local and Magistrates’ courts by ASIC.

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

Section 250N of the Corporations Act requires public companies to hold AGMs within 18 months after registration and at least once per calendar year and within five months after the end of its financial year.

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