Does a wholly-owned entity qualify for class order relief from financial reporting requirements if the company or its entity has failed to lodge financial statements for one to three years prior?
One of the conditions of ASIC Class Order 98/1418 is that the company and its wholly-owned entity must have substantially complied with the financial reporting and audit requirements of the Corporations Act 2001 for the 3 years immediately prior to applying the class order for the first time. Failure to lodge financial statements is not considered substantial compliance. Similarly, ASIC is unlikely to consider the lodgement of financial statements more than one month late as substantial compliance in the absence of an extension of time having been granted by ASIC prior to the lodgement deadline. ASIC may consider individual relief in some circumstances. See the editorial note to ASIC Pro Forma 24 ‘Deed of Cross Guarantee’ for more information. (For a copy of this pro forma, contact our Infoline on 1300 300 630 or by email).
Related Questions
- Does a wholly-owned entity qualify for class order relief from financial reporting requirements if the company or its entity has failed to lodge financial statements for one to three years prior?
- When should a proprietary company that does not meet the requirements for audit relief under ASIC Class Order 98/1417 apply for individual relief?
- Does ASIC consider costs and inconvenience when deciding whether to give a company relief from financial reporting requirements?
