ALT Financial Group fined $123,000 for annual report failures
ALT Financial Group has been fined $123,000 for failing to lodge annual financial report, the largest fine handed down from these breaches.
The Australian Securities and Investments Commission (ASIC) said this reflected the seriousness of the offence and the impact on shareholders and creditors.
ALT was the holding company of a larger group of companies that operated as an alternative asset manager and was required to to lodge the complete financial reports to ASIC within three months after the end of the financial year.
ALT, which failed to appear at Downing Centre Court in Sydney on 21 February 2023, was convicted on 13 ASIC charges for failure to:
• Lodge annual financial reports with ASIC for the 2018 to 2021 financial years
• Report to members for the 2018 to 2021 financial years
• Hold an annual general meeting (AGM) in 2018 to 2021 and
• Comply with the requirement to have at least three directors, excluding alternate directors.
Under the Corporations Act, companies were required to report to members for a financial year by the earlier of 21 days before the next AGM after the end of the financial year or four months after the end of the financial year.
They were also required to hold AGMs within 18 months after registration and at least once per calendar year and within five months after the end of its financial year.
Regarding directors, firms should have at least three directors, two of which ordinarily reside in Australia.
A statement said: “ASIC will continue to prosecute companies that are negligent in their reporting responsibilities aimed at assisting shareholders, creditors and members of the public make informed decisions.”
AUTHOR
Laura Dew
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