ASIC issues hefty fine for non-compliance

Following a recent investigation by the Australian Securities and Investments Commission (ASIC), a foreign controlled agricultural production company has been fined $300,000 for failing to comply with financial reporting and company officer obligations.

With this conviction fresh in the air it’s imperative to understand what your obligations are as an Officeholder of a registered company, and ensure you are compliant.

What’s my obligations as an Officeholder?

If you are an Officeholder for a registered Company there are a number of obligations required by law that must be complied with. These obligations can be found on ASIC’s website here and include:

Ensuring company Directors have a Director Identification number
Ensuring the company has at least one director of the company who is ordinarily resident in Australia
Keeping accurate and up to date company records including; financial records, minutes of meetings, deeds and member registers.
Lodging the appropriate financial reports and notifications with ASIC
Lodging solvency resolutions
Holding annual general meetings
Reporting to company members

ASIC states that these obligations are in place to promote confidence in the investors and support the integrity of Australia’s financial system. Failing to comply with the above obligations will result in a breach of the Corporations Act 2001, partnered with hefty fines.

Mazars has extensive experience assisting and advising officeholders in relation to corporate governance matters, and managing company secretarial affairs, giving our clients peace of mind they are complying with their obligations. If you have any queries around your obligations as an Officeholder of an Australian company, please contact your usual Mazars advisor or one of our specialists via the form below or on:

Brisbane – Matthew Green	Melbourne – Craig Silvester	Sydney - Rose Megale
+61 7 3218 3900	+61 3 9252 0800	+61 2 9922 1166

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Published: 15 December 2021

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ASIC issues hefty fine for non-compliance

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