Small foreign controlled company fined $187,800 by ASIC for financial reporting non-compliance

Optix Australasia Pty Ltd, a small foreign-owned company, has paid a $187,800 penalty after the Australian Securities and Investments Commission (ASIC) found it failed to lodge its 2023 financial reports on time, as required by the Corporations Act 2001.

By Ro Elvinia

Though it does not constitute an admission of guilt or liability, the penalty was paid on 8 November 2024. Optix self-reported the reporting delays, which covered the 2023 financial year and earlier periods. These issues were identified after South African-listed KAP Limited took ownership of Optix, a factor ASIC took into account when determining its enforcement action.

The Corporations Act 2001 mandates that small proprietary companies under foreign control for any portion of a financial year must prepare annual financial and director reports, unless their financial information is consolidated within statements filed with ASIC by an associated registered foreign company, another entity, a disclosing entity or a registered scheme.

ASIC’s Regulatory Guide 58 Reporting by registered foreign companies and Australian companies with foreign shareholders provides guidance on these reporting requirements and describes scenarios where ASIC may offer relief from certain financial reporting obligations under the Act.

The details of the case, including ASIC’s specific concerns, are published in the infringement notices available on the ASIC Infringement Notices Register.

Since 1976, ABN Australia has been assisting clients with their ASIC compliance needs and staying up to date with changes in regulations. ABN Australia has been helping international businesses understand ASIC’s reporting requirements for foreign-controlled companies, assessing eligibility for reporting relief and ensuring timely lodgement of financial and director reports. Our experienced team is here to simplify your compliance obligations and protect your business from potential penalties under the Corporations Act 2001.

Published: 18^th Nov 2024 | Last updated: 18^th Nov 2024