During the first six months of 2023, over A$700,000 ($442,239) has been secured in penalties for prosecuting 36 companies over failings to lodge financial reports, failings to hold annual general meetings (AGMs) and over failings to have the required number of directors and resident directors.
Of all 36 prosecutions, three resulted in fines over A$100,000 ($63,237).
Asset management firm ALT Financial Group Ltd faced the largest fine of A$123,000 ($77,810) over failing to lodge annual reports, and it didn’t hold AGMs between 2018 and 2021. The company also failed to maintain the required minimum number of company directors.
The second largest fine of A$110,000 ($69,564) was on TV2U International Ltd, a corporate telecommunications company, for not lodging annual financial reports for the 2021 and 2022 financial years, nor half-year financial reports for 31 December 2020 and 2021, and failure to report to members and hold an AGM in 2021.
TV2U International Ltd also didn’t have a company secretary and didn’t have the required number of directors and resident directors.
Not lodging financial reports
RMG Ltd, a resources exploration business, was convicted and fined A$105,000 ($66,366) for not lodging three annual financial reports between 2020 and 2022, nor the half-year financial report for 31 December 2020. The firm also failed to have a company secretary and have the required number of directors and resident directors.
“Financial reports provide shareholders, creditors and the public with important information, enabling them to make informed decisions when dealing with these companies. It is crucial that disclosing entities lodge their financial reports in a timely manner,” ASIC said.
The charges against Western Australian Coal Terminal Pty Ltd, over failings to lodge annual financial reports between 2017-2021 and not having at least one resident director, were dismissed.
The companies were prosecuted summarily in Local and Magistrates’ Courts by ASIC, and the full list is shown below.
| Company | Result (A$100=$63) | Offence/s |
|---|---|---|
| ALT Financial Group Ltd (ACN 609 449 194) | A$123,000 fine; conviction | Failure to lodge annual financial reports from 2019-2021 Failure to hold AGMs from 2018-2021 Failure to maintain minimum company directors |
| TV2U International Ltd (ACN 110 184 355) | A$110,000 fine; conviction | Failure to lodge annual financial reports for 2021, 2022 Failure to lodge half-year reports for 2020, 2021 Failing to have company secretary Failing to maintain required number of directors/resident directors |
| RMG Ltd (ACN 065 832 377) | A$105,000 fine; conviction | Failing to lodge annual financial reports from 2020-2022 Failing to lodge half-year financial report for 30 December 2020 Failing to have company secretary Failing to maintain required number of directors/resident directors |
| Adgex Ltd (ACN 156 556 035) | A$83,000 fine; conviction | Failing to lodge annual financial reports from 2019-2021 Failing to hold AGMs from 2019-2021 Failing to maintain minimum number of company directors |
| Intelligent Inventions Ltd (ACN 119 417 784) | A$50,000 fine; conviction | Failing to lodge annual financial reports from 2017-2021 |
| Ausgold Resources Ltd (ACN 006 620 686) | A$40,000 fine; conviction | Failing to lodge annual financial reports from 2017-2020 |
| Ashby Mining Ltd (ACN 602 696 873) | A$33,000 security; three-year good behaviour bond | Failing to lodge annual financial reports from 2020-2022 |
| Austsino Resources Group Ltd (ACN 009 076 242) | A$31,000 reparation payment to ASIC | Failing to lodge annual financial report for 2020 Failing to lodge half-year financial report for 2020 Failing to hold AGM in 2020 |
| Soar.Earth Ltd (ACN 136 358 337) | A$25,000 fine; conviction | Failing to lodge annual financial reports from 2019-2022 |
| Watco International Pty Ltd (ACN 150 437 988) | A$16,000 fine; conviction | Failing to lodge annual financial reports from 2017-2020 |
| ABM Australia Holding Pty Ltd (ACN 632 660 774) * | A$15,000 fine; conviction | Failing to lodge annual financial reports from 2019-2021 |
| Mount Rommel Mining Ltd (ACN 616 382 515) | A$13,000 fine; conviction | Failing to lodge annual financial reports from 2018-2021 Failing to lodge half-year financial reports for 31 December from 2017-2020; Failing to hold AGM’s from 2018-2021 |
| Secure Money Australia Income Ltd (ACN 636 935 012) | A$10,000 security; two-year good behaviour bond | Failing to lodge annual financial reports from 2020-2022 Failing to hold an AGM in 2021 |
| TWH Australia Pty Ltd (ACN 149 243 890) | A$9000 fine; conviction | Failing to lodge annual financial reports for 2020, 2021 |
| Watco WA Rail Pty Ltd (ACN 150 437 988) | A$8,000 fine; conviction | Failing to lodge annual financial reports from 2017-2020 |
| The Galactic Corporation Pty Ltd (ACN 626 375 853) * | A$6,000 fine; conviction | Failing to lodge annual financial reports from 2019-2022 |
| Lovekins Trading Australia Pty Ltd (ACN 631 920 520) * | A$6,000 fine; conviction | Failing to lodge annual financial reports from 2019-2022 |
| Muxin Holdings Pty Ltd (ACN 633 610 134) * | A$6,000 fine; conviction | Failing to lodge annual financial reports from 2019-2022 |
| Muxin Pty Ltd (ACN 631 920 520) * | A$6,000 fine; conviction | Failing to lodge annual financial reports from 2019-2022 |
| Access Logistics Services Pty Ltd (ACN 630 358 066) * | A$5,000 fine; conviction | Failing to lodge annual financial reports for 2021, 2022 |
| Carbontrack Ltd (ACN 120 475 505) | A$5,000 fine; conviction | Failing to lodge annual financial reports from 2019-2021 |
| E3Sixty Ltd (ACN 009 815 605) | A$5,000 fine; conviction | Failing to lodge annual financial reports for 2020, 2021 |
| Eimele Pty Ltd (ACN 614 836 261) * | $A5,000 fine; conviction | Failing to lodge annual financial reports for 2021, 2022 |
| Fodder King Ltd (ACN 003 537 362) | A$5,000 reparation payment to ASIC | Failing to lodge annual financial reports from 2017-2021 Failing to report to members Failing to hold AGMs from 2017-2021 Failing to maintain the required number of company directors |
| SRW Co Pty Ltd (ACN 629 357 571) * | A$5,000 fine; conviction | Failing to lodge annual financial reports for 2021, 2022 |
| Theronomic Pty Ltd (ACN 630 358 897) * | A$5,000 fine; conviction | Failing to lodge annual financial reports for 2021, 2022 |
| VTN Trading Australia Pty Ltd (ACN 614 836 261) * | A$5,000 fine; conviction | Failing to lodge annual financial reports for 2021, 2022 |
| Yican Pty Ltd (ACN 631 919 876) * | A$5,000 fine; conviction | Failing to lodge annual financial reports for 2021, 2022 |
| Rivustv Ltd (ACN 626 375 853) | A$4,000 fine; conviction | Failing to lodge annual financial reports from 2019-2022 |
| Lanco Resources Australia Pty Ltd (ACN 147 835 452) | A$3,000 fine; conviction | Failing to maintain required number of company directors |
| Collins Court Corporation Ltd (ACN 004 059 741) | A$2,000 security; 12-month good behaviour bond | Failing to lodge annual financial reports between 2017-2021 |
| Eagle Health Holdings Ltd (ACN 616 382 515) | A$2,000 fine; conviction | Failing to lodge annual financial reports from 2019-2021 Failing to lodge half-year financial reports for 30 June 2020, 2021 Failing to hold AGMs for 2019, 2020 Failing to maintain required number of company directors |
| Sofcom Ltd (ACN 087 482 602) | A$2,000 fine; conviction | Failing to lodge annual financial reports from 2017-2021 |
| Consolidated Financial Services Ltd (ACN 006 620 686) | A$1,500 security; 12-month good behaviour bond | Failing to lodge annual financial reports from 2017-2020 |
| Too Build Group Ltd (ACN 120 475 505) | A$1,000 security; six-month good behaviour bond; A$500 charitable donation | Failing to lodge annual financial reports from 2017-2020 |
| Western Australian Coal Terminal Pty Ltd (ACN 159 749 283) | Charges dismissed | Failing to lodge annual financial reports from 2017-2021 Failing to have at least one resident director |
| * denotes a company that is part of the ABM Group |
Australian Corporations Act
- Section 250N – public companies are required 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.
- Section 292 – all disclosing entities, public companies, large proprietary companies, and registered schemes are required to prepare financial reports each financial year.
- Section 302 – disclosing entities are required to prepare financial reports each half-year.
- Section 319 – a disclosing entity and registered scheme are required 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 – a disclosing entity is required 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.