Corporations (Aboriginal and Torres Strait Islander) Act 2006

CHAPTER 7 - RECORD KEEPING, REPORTING REQUIREMENTS AND BOOKS  

PART 7-5 - CRITERIA FOR DETERMINING LEVEL OF REPORTING REQUIREMENTS  

Division 358 - Criteria for determining level of reporting requirements  

SECTION 358-5   CRITERIA FOR DETERMINATIONS ABOUT LEVEL OF REPORTING REQUIREMENTS  
Criteria

358-5(1)    
The Registrar must have regard to:

(a)    whether the current reporting obligations make a financial report or other report misleading; and

(b)    whether the current reporting obligations are, or the proposed reporting obligations would be, appropriate in the circumstances (see subsection (2) ); and

(c)    whether the current reporting obligations impose, or the proposed reporting obligations would impose, unreasonable burdens (see subsection (3) ).

Appropriateness of obligations in the circumstances

358-5(2)    
In deciding for the purposes of subsection (1) whether the current reporting obligations are, or the proposed reporting requirements would be, appropriate in the circumstances, the Registrar is to have regard to:

(a)    the services (if any) provided by the corporation or corporations; and

(b)    the consequences if the corporation or corporations stopped providing those services; and

(c)    whether the corporation or corporations are regarded by the Registrar as being of a high risk of becoming insolvent or of failing to comply with the reporting requirements under the Act (because of the corporation ' s or corporations ' purposes, structures, or compliance histories); and

(d)    any other matter the Registrar considers relevant.

Unreasonable burden

358-5(3)    
In deciding for the purposes of subsection (1) whether the current reporting obligations impose, or the proposed reporting obligations would impose, an unreasonable burden on the corporation or corporations, the Registrar is to have regard to:

(a)    the expected costs of complying with the obligations; and

(b)    the expected benefits of having the corporation or corporations comply with the obligations; and

(c)    any practical difficulties that the corporation or corporations face in complying effectively with the obligations; and

(d)    any unusual aspects of the operation of the corporation or corporations during the financial year concerned; and

(e)    any other matters that the Registrar considers relevant.

358-5(4)    
In assessing expected benefits under paragraph (3)(b) , the Registrar is to take account of:

(a)    the number of creditors and potential creditors; and

(b)    the position of creditors and potential creditors (in particular, their ability to independently obtain financial information about the corporation or corporations); and

(c)    the nature and extent of the liabilities of the corporation or corporations.