ASIC prosecutes seven companies for failing to lodge financial reports and hold AGMs

ASIC prosecutes seven companies for failing to lodge financial reports and hold AGMs

Lodging financial reports with the Australian Securities and Investments Commission (ASIC) is not optional, neither is holding AGMs.

In its recent media release MR 22-022, ASIC named and shamed seven unlisted companies for failing to lodge annual reports for a number of years (in some cases for up to seven years) and two for failing to hold AGMs.

Fines levied on these entities varied from $4,000 to as much as $300,000, the latter case being an entity delisted from the ASX that did not lodge one annual report and one half-year report, did not hold one AGM, and did not have a company secretary and the requisite number of directors.

Entities failing to lodge financial reports with ASIC face penalties of up to $26,640 (120 penalty units at $222 each) and those failing to hold an AGM face penalties of up to $6,660 (30 penalty units at $222 each).

Do you need assistance getting your financial statement lodgements up to date?

Please contact BDO’s IFRS & Corporate Reporting team if you require assistance preparing overdue financial statements for unlisted public and large proprietary companies in your group.