ASIC prosecuted three companies between 1 July 2020 to 31 December 2020 for failing to comply with their financial reporting obligations.

Australian companies are required by law to lodge annual financial reports with ASIC within a specified period after the end of the financial year. 

The three companies prosecuted by ASIC include:

• Burbank Properties Pty Ltd ACN 010 072 170 (Burbank);
• JHT Holdings Ltd ACN 164 889 481 (JHT Holdings); and
• Grundfos Australia Holding Pty Ltd ACN 162 450 259 (Grundfos).

Burbank failed to lodge annual financial reports for five years between 2015 and 2019 (inclusive). Burbank was convicted and received a $5,000 fine.

JHT Holdings failed to lodge annual financial reports for five years between 2014 and 2018 (inclusive). JHT Holdings was convicted and received a $5,000 fine.

Grundfos was charged with late lodgement of annual financial reports for five years between 2014 and 2018 (inclusive). Grundfos was discharged without conviction by way of a bond under section 19B Crimes Act and required to be of good behaviour.

ASIC will continue to take action to ensure companies comply with their financial reporting obligations. Accurate and timely financial reporting allows shareholders, creditors and the public to make informed decisions about Australian companies.

Background

Section 292 of the Corporations Act requires all disclosing entities, public companies, large proprietary companies and registered schemes to prepare financial reports each financial year.

Section 319 of the Corporations Act require a disclosing entity and registered scheme to lodge the complete financial reports within three months after the end of the financial year. All other entities are required to lodge their financial reports within four months after the end of the financial year.