Corporations Amendment (Corporate Reporting Reform) Act 2010 (66 of 2010)

Schedule 1   Amendments relating to the Corporations Act 2001

Part 1   Main amendments

Corporations Act 2001

16   After section 294

Insert:

294A Small company limited by guarantee - member direction

(1) Members with at least 5% of the votes in a small company limited by guarantee may give the company a direction to:

(a) prepare a financial report and directors' report for a financial year; and

(b) send them to members who have elected to receive them under section 316A.

(2) The direction must be:

(a) signed by the members giving the direction; and

(b) made no later than 12 months after the end of the financial year concerned.

(3) The direction may specify all or any of the following:

(a) that the financial report does not have to comply with some or all of the accounting standards;

(b) that a directors' report or a part of that report need not be prepared;

(c) that the financial report is to be audited or reviewed.

294B Small company limited by guarantee - ASIC direction

(1) ASIC may give a small company limited by guarantee a direction to comply with the requirements of this Division and Divisions 3, 4, 5 and 6 for a financial year.

(2) An offence based on subsection (1) is an offence of strict liability.

Note: For strict liability, see section 6.1 of the Criminal Code.

(3) The direction may be general or may specify the particular requirements that the company is to comply with.

(4) The direction must specify the date by which the documents have to be prepared, sent or lodged. The date must be a reasonable one in view of the nature of the direction.

(5) The direction must:

(a) be made in writing; and

(b) specify the financial year concerned; and

(c) be made no later than 6 years after the end of that financial year.

(6) A direction given under subsection (1) is not a legislative instrument.