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.