All public companies must prepare and have audited at least annually a set of financial statements, provide them to shareholders, and hold an Annual General Meeting.
Some companies also have half-yearly financial reporting requirements.
However, the degree of reporting and the time-frames can vary, depending on the specific type of company and whether or not it is listed on a stock exchange (ie, Australian Stock Exchange or National Stock Exchange), as set out below:
- stock exchange listed companies do not have to lodge any financial reports with ASIC that they have lodged with a stock exchange in Australia under Class Order 98/104 (ASX), CO 06/6 (NSX) & RG 28, provided such reports are lodged with the stock exchange within the Corporations Act timeframes; otherwise they must separately lodge with ASIC
- Listing Rule references are ASX
Most proprietary companies have no statutory reporting requirements.
Only ‘large proprietary’ and ‘foreign-owned’ companies have explicit reporting obligations
– and they are only annual, not half-year – although some ‘small proprietary’ companies may in some circumstances also have annual reporting requirements imposed by shareholders, see below:
- A ‘large proprietary’ company is defined (sec.45A) as one with any 2 of revenue of $25m or greater, assets of $12.5m or greater, employs 50 or more
- A ‘foreign’ company is one which is owned or controlled by a foreign company and is not otherwise consolidated into financial statements lodged with ASIC by a registered foreign company – sec.292
- A ‘small proprietary’ company’ is one which is not a ‘large proprietary’ company and its reporting requirement is only if requested by shareholders with at least 5% of the company’s shares – sec.293
Note: all above lodgment deadlines relate to the time period after financial/half-year end
*Originally written by Company Secretary, an Australian virtual company secretary service.