ASIC prosecuted fifteen companies between 1 July 2022 and 31 December 2022 for failing to comply with their obligations to lodge financial reports with ASIC, obtaining over $115,000 in financial penalties.   

ASIC prosecuted:

• McGrath Saleco Limited (ACN 608 153 797), which was convicted and fined $40,000 for failing to lodge four annual reports between 2017 and 2020,
• Monarca LMC Ltd (ACN 614 690 943), which was convicted and fined $18,000 for failing to lodge three annual financial reports between 2018 and 2020, failing to hold annual general meetings for the financial years 2018 and 2020 and failing to report to members for the financial years ending 7 March 2018, 7 March 2019 and 7 March 2020,
• American Patriot Oil & Gas Limited (ACN 154 049 144), which was convicted and fined $15,000 for failing to lodge three annual financial reports between 2019 and 2021, one half year financial report for the half year ending 31 December 2019, failing to hold an annual general meeting in 2019 and failing to report to members for the financial year ending 30 June 2019,
• Intelligent Capital Limited (ACN 626 824 315), which was convicted and fined $15,000 for failing to lodge three annual financial reports between 2019 and 2021,
• Lycamobile Pty Ltd (ACN 139 717 212), which was convicted and fined $9,000 for failing to lodge two annual financial reports in 2018 and 2019,
• Vantage Goldfields Limited (ACN 140 157 820), which was convicted and fined $7,500 for failing to lodge five annual financial reports between 2016 and 2020,
• ADG Global Supply Limited (ACN 616 232 556), which was convicted and fined $5,000 for failing to lodge three annual financial reports between 2017 and 2019,
• CWT Technology Holdings Limited (ACN 618 840 127), which was convicted and fined $4,000 for failing to lodge three annual financial reports between 2018 and 2020, failing to hold annual general meetings for the financial years 2019 to 2020 and failing to report to members for the financial years ending 30 June 2018, 30 June 2019 and 30 June 2020,
• Biosar Australia Pty Ltd (ACN 620 817 665), which was convicted and fined $3,500 for failing to lodge two annual financial reports in 2018 and 2019.
• Aurora Metals Limited (ACN 126 634 606), which was convicted and fined $2,500 for failing to lodge two annual financial reports between 2020 and 2021 and two half year financial reports for the half years ending 31 December 2019 and 31 December 2020,
• Fulcrum Equity Limited (ACN 053 687 728), which was convicted and fined $750 for failing to lodge five annual financial reports between 2017 and 2021,
• Mt Martha Valley Estates Ltd (ACN 617 827 764), which was placed on a good behaviour bond for failing to lodge four annual financial reports between 2017 and 2020,
• Halo Capital Ltd (ACN 605 884 848), which was placed on a good behaviour bond for failing to lodge four annual financial reports between 2018 and 2021,
• Nextgen Gaming Pty Ltd (ACN 090 108 688), who pleaded guilty to failing to lodge three annual financial reports between 2018 and 2020 but charges were dismissed, and
• Harris Scott Pty Ltd (ACN 616 232 556), who pleaded guilty to failing to lodge four annual financial reports between 2018 and 2021 but charges were dismissed.

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, while some also have a legal requirement to lodge financial reports every half year. Public companies must hold AGMs at least once per calendar year within a specified period after the end of its financial year.

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

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.