Company officer shares liability for failure to lodge
The company secretary of a business listed on the Australian Stock Exchange was placed on a good behaviour bond for six months and ordered to pay court costs earlier this year after failing to meet the reporting requirements that are part of the laws governing corporations. His company was fined and also ordered to pay costs.
The government investigators found that the company had failed to:
- hold an annual general meeting within five months of the end of its financial year;
- lodge a half-yearly financial report with within 75 days of the end of a particular period;
- provide its financial report, directors’ report and auditor’s report to its members within four months of the end of a financial year;
- and lodge its annual report within three months of the end of a financial year.
Under the law, company secretaries can be held responsible for the failure of companies to lodge their financial reports.
If you are a company officer and suspect that your business may not be able to meet its financial reporting and AGM requirements, see your solicitor about what options may be available to seek an extension of time.