CORPORATIONS ACT 2001

CHAPTER 2M - FINANCIAL REPORTS AND AUDIT  

PART 2M.3 - FINANCIAL REPORTING  

Division 4 - Annual financial reporting to members  

SECTION 314   ANNUAL FINANCIAL REPORTING TO MEMBERS  

314(1)  


A company, registered scheme or disclosing entity must report to members for a financial year by providing either of the following in accordance with subsection (1AA), (1AE) or (1AF):


(a) all of the following reports (that are required to be prepared):


(i) the financial report for the year;

(ii) the directors ' report for the year (see sections 298 to 300A );

(iii) the auditor ' s report on the financial report;


(b) a concise report for the year that complies with subsection (2).

314(1AAA)  


This section does not apply to a company limited by guarantee.

Note: The requirement for annual financial reporting to members for those companies is in section 316A .

314(1AA)  


A company, registered scheme or disclosing entity may provide the reports, or the concise report, for a financial year by doing all of the following:


(a) sending, to each member who has made the election referred to in paragraph (1AB)(a):


(i) a hard copy of the reports, or the concise report; or

(ii) if the member has elected to receive the reports, or the concise report, as an electronic copy in accordance paragraph (1AB)(c) - an electronic copy of the reports, or the concise reports;


(b) making a copy of the reports, or the concise report, readily accessible on a website;


(c) directly notifying, in writing, all members who did not make the election referred to in paragraph (1AB)(a) that the copy is accessible on the website, and specifying the direct address on the website where the reports, or the concise report, may be accessed.

Note: A direct address may be specified, for example, by specifying the URL of the reports or the concise report.

314(1AB)  
For the purposes of paragraph (1AA)(a), a company, registered scheme or disclosing entity must, on at least one occasion, directly notify in writing each member that:


(a) the member may elect to receive, free of charge, a copy of the reports for each financial year, or a copy of the concise report for each financial year; and


(b) if the member does not so elect - the member may access the reports, or the concise report, on a specified website; and


(c) if the member does so elect and the company, scheme or entity offers to send the report either as a hard copy or an electronic copy - the member may elect to receive the copy as either a hard copy or an electronic copy.

314(1AC)  
An election made under subsection (1AB) is a standing election for each later financial year until the member changes his, her or its election.

Note: The member may request, under section 316 , the company, registered scheme or disclosing entity not to send them material under this section.

314(1AD)  
A member may, for the purposes of paragraph (1AA)(c) or subsection (1AB), be notified by electronic means only if the member has previously nominated that means as one by which the member may be notified.

314(1AE)  
A company, registered scheme or disclosing entity may provide the reports, or the concise report, by sending each member:


(a) a hard copy of the reports, or the concise report; or


(b) an electronic copy of the reports, or the concise report, if the member has nominated that means as one by which the member may be sent the reports or the concise report.

314(1AF)  


If a company:


(a) is a public company that is covered under section 738ZI at the end of the financial year mentioned in subsection (1); or


(b) is a small proprietary company that has one or more CSF shareholders at any time during the financial year mentioned in subsection (1);

it may provide the reports, or the concise report, for that financial year by making a copy of the reports, or the concise report, readily accessible on a website. The company also need not comply with subsection (1AB).

314(1A)  


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

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

Concise report

314(2)  
A concise report for a financial year consists of:


(a) a concise financial report for the year drawn up in accordance with accounting standards made for the purposes of this paragraph; and


(b) the directors ' report for the year (see sections 298 - 300A ); and


(c) a statement by the auditor:


(i) that the financial report has been audited; and

(ii) whether, in the auditor ' s opinion, the concise financial report complies with the accounting standards made for the purposes of paragraph (a); and


(d) a copy of any qualification in, and of any statements included in the emphasis of matter section of, the auditor ' s report on the financial report; and


(e) a statement that the report is a concise report and that the full financial report and auditor ' s report will be sent to the member free of charge if the member asks for them.

314(2A)  


If paragraph (1AF)(a) or (b) applies to the company for the financial year mentioned in subsection (1), apply subsection (2) to the company in relation to that financial year with the following modifications:


(a) insert the words " if the company ' s financial report for the year is required to be audited - " at the start of each of paragraphs (2)(c) and (d);


(b) omit the words " and that the full financial report and auditor ' s report will be sent to the member free of charge if the member asks for them " in paragraph (2)(e).

314(3)  
If the accounting standards made for the purposes of paragraph (2)(a) require a discussion and analysis to be included in a concise financial report:


(a) the auditor must report on whether the discussion and analysis complies with the requirements that the accounting standards lay down for the discussion and analysis; and


(b) the auditor does not otherwise need to audit the statements made in the discussion and analysis.

314(4) - 314(6)  
(Repealed by No 101 of 2007, s 3, Sch 1, Pt 1 [ 40] (effective 28 June 2007).)


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