ASIC secures $700,000-plus in fines for financial reporting failures

ASIC has announced that it prosecuted 36 companies and secured more than $700,000 in fines from Jan. 1 to June 30, due to failures in lodging financial reports, holding annual general meetings, and maintaining the required number of directors and resident directors.

Three of the companies prosecuted by the corporate watchdog were fined more than $100,000:

• ALT Financial Group was slapped with a $123,000 fine for failing to lodge annual reports and hold AGMs from 2018 to 2021, as well as for failing to maintain the minimum number of company directors.
• TV2U International was hit with a $110,000 penalty for failing to lodge annual financial reports for the 2021 and 2022 financial years, and half-year financial reports for Dec. 31, 2020 and 2021. The telecommunications company also failed to report to members and hold an AGM in 2021, have a company secretary, and maintain the required number of directors and resident directors.
• RMG was convicted and fined $105,000 for failing to lodge annual financial reports from 2020 and 2022 and a half-year financial report for Dec. 31, 2020. The resources exploration business also failed to have a company secretary and maintain the required number of directors and resident directors.

ASIC also obtained significant penalties from Adgex, which was fined $83,000 for failing to lodge reports or hold AGMs from 2019 to 2021 and to maintain the required number of directors and resident directors, and ABM Group, which 11 companies had been fined a total of $69,000.

“Financial reports provide shareholders, creditors, and the public with important information, enabling them to make informed decisions when dealing with these companies,” ASIC said in a media release. “It is crucial that disclosing entities lodge their financial reports in a timely manner.” 

Companies prosecuted by ASIC also included Intelligent Inventions, Ausgold Resources, Ashby Mining, Austsino Resources Group, Soar.Earth, Watco International, ABM Australia Holding, Mount Rommel Mining, Secure Money Australia Income, TWH Australia, Watco WA Rail, and The Galactic Corporation.

The list also included Lovekins Trading Australia, Muxin Holdings, Muxin, Access Logistics Services, Carbontrack, E3Sixty, Eimele, Fodder King, SRW, Theronomic, VTN Trading Australia, Yican, Rivustv, Lanco Resources Australia, Collins Court, Eagle Health Holdings, Sofcom, Consolidated Financial Services, and Too Build Group.

One company, Western Australian Coal Terminal, saw its ASIC charges – of failing to lodge annual financial reports from 2017-2021 and to have at least one resident director – dismissed.

The companies were prosecuted summarily in local and magistrates’ courts by ASIC.

For more information about the companies’ offence/s and the action of ASIC against them, read ASIC obtains over $700,000 in penalties for financial reporting failures.