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| Australian Business Survey Findings |
| A survey by regulators of more than two hundred businesses has revealed that many businesses are failing to comply with the reporting requirements set out in s 299 of the Corporations Law. |
An area of particular concern is the inadequate level of environmental reporting. |
The survey showed that companies are in many cases making inadequate disclosure of environmental regulations, risks and issues affecting their operations, and in some cases, making no disclosure at all. |
The requirement to make disclosures on environmental regulation applies to all companies other than small proprietary companies and would normally apply to companies operating under a licence or approval from a regulatory authority. |
The survey also revealed inadequate disclosure of directors’ emoluments. Companies are failing to disclose the value and terms of options granted to directors and officers as well as the amounts earned by some or all of the top five earners. In one case, a company failed to disclose emoluments in a foreign currency, contrary to the law. Although the law requires the disclosure of the value of all emoluments, including the value of options, only a handful of those companies which issued share options to directors and executive officers placed a value on the options. |
Regulators are concerned to ensure that comparable information is provided to investors and are focusing on these and other areas in their review of companies. |
Unlisted companies are also likely to be scrutinised. Contact us for advice on how the reporting requirements under the Corporations Law apply to your business. |
