ALT Financial Group Ltd ACN 609 449 194 has been convicted on multiple charges, including failing to lodge annual financial reports with ASIC, and fined a total of $123,000.

The fine is one of the largest handed down for these breaches and reflects the seriousness of the offences and the potential impact it may have had on shareholders and creditors being denied information that would have enabled them to make informed decisions about their investments or dealings with the company.

The company failed to appear before the Downing Centre Court on 21 February 2023 and was convicted in its absence on 13 ASIC charges for failing 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.

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.

Background

ALT Financial Group Ltd is the holding company of a larger group of companies that operate as an alternative asset management business. Section 319 of the Corporations Act requires 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.

Section 315 of the Corporations Act requires a company, registered scheme or disclosing entity 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.

Section 250N of the Corporations Act requires public companies 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.

Section 201A(2) of the Corporations Act requires public companies to have at least three directors. At least two directors must ordinarily reside in Australia.

ASIC publishes six monthly reports of its prosecutions against companies for failing to lodge financial reports. Refer 23-033MR for actions in the period 1 July 2022 to 31 December 2022.