ASIC Report: New ways to update company details

ASIC has introduced new ways to update company details and pay fees. Mark Drysdale, executive director, Public and Commercial Services outlines the transitional arrangements

If you run a company, telling us of changes to company details and paying your fees became different from July 1 because of Government law reforms. Here's what you must do to comply with the new laws, as well as the arrangements we've made to help you make the transition to the new requirements.

How to update details and pay

Annual returns have been abolished. Instead, we'll send you (or your agent if you use one) an annual statement package soon after your review date, based on the anniversary of your company's registration date. It will include a company statement to review and an invoice statement to pay.

1. Change company details within 28 days

Your Company Statement sets out details of your company from ASIC records. You must check it carefully. If any changes are needed, you must lodge a Form 484: Change to company details, within 28 days of the Company Statement being issued, or face late fees. If no changes are needed, you don't need to lodge anything with us but you must still pay the review fee.

You must also tell us about changes throughout the year when they occur, using Form 484.

2. Pay review fee within two months of review date

The Invoice Statement sets out your annual review fee, which you must pay within two months of your review date or face late fees. This fee must be paid, even if your statement is correct. You'll soon have a choice of payment options, including BPay, over the counter at Australia Post offices and EFT.

3. Pass a solvency resolution within two months of review date

Directors must do this, unless their company lodged its financial report and directors report under Chapter 2M of the Corporations Act in the 12 months before review date. If the resolution is:

• positive, ie directors believe the company will be able to pay its debts — you don't have to lodge any form, just pay your annual review fee

• negative, ie directors believe the company won't be able to pay its debts — you must lodge a Form 485 within seven days of passing the resolution.

If a solvency resolution hasn't been passed within a two-month statutory period after the annual review date, you must tell us within seven days from the end of that two-month period using Form 485.

In addition:

• public companies need only tell us of changes to members' details and share structure at the time of their annual review

• proprietary companies must tell us of changes to issued shares and changes to the top 20 members within 28 days of the change.

Guidance through the transition

To help ease your company into the new ways to update your details and pay fees, we have put in place the following transitional arrangements:

For all companies

• If changes to company details using form 484 are received by ASIC between 1 July and 30 September 2003, we won't charge late lodgement fees, regardless of the date of change. Don't miss this excellent opportunity to get your company record up to date without penalty by 30 September.

• For the new rules about telling us of changes to share and member details:

- if the change occurred before 1 July 2003 (when it was not required by law to be notified),

- then your company will have up to 28 days after their first review date to update these details.

• We will accept "old" forms 203 (change to address) and 304 (change to officeholders) lodged by 30 September 2003.

For a July, August or September review date when you receive your annual statement, electronically or in hard copy, you must:

1. Review your company statement and tell us of any changes within 28 days of the issue date. We won't charge you late fees providing you update your record by 28 October.

2. Pay your annual review fee within two months of the review date or face late fees. For example, a company with a review date of 1 July must pay the annual review fee by 1 September.

3. Make your solvency resolution within two months of your review date.

If your company has a July review date, you will receive your annual statement by early August. If your company has an August or September review date, it will arrive soon after your review date.

For companies with a review date on or after 1 October

You will receive your annual statement soon after your review date and follow the three steps above, but no late review fee relief will apply.

www.asic.gov.au

Disclaimer

The purpose of this database is to provide a full-text record of all articles that have appeared in the CDJ since February 1997. It is aimed to assist in the research and reference process. The database has a full-text index and will enable articles to be easily retrieved.It should be noted that information contained in this database is in pre-publication format only - IT IS NOT THE FINAL PRINTED VERSION OF THE CDJ - therefore there might be slight discrepancies between the contents of this database and the printed CDJ.