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Corporations (Aboriginal and Torres Strait Islander) Bill 2006

Part 7-5 Criteria for determining level of reporting requirements

Division 358 Criteria for determining level of reporting requirements

358-1   What this Part is about

This Part sets out the criteria that the Registrar must apply in deciding whether to make certain determinations in relation to an Aboriginal and Torres Strait Islander corporation or a class of Aboriginal and Torres Strait Islander corporation.

358-5   Criteria for determinations about level of reporting requirements

Criteria

             (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

             (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

             (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.

             (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.

358-10   Reporting obligations

             (1)  The current reporting obligations are the obligations that the corporation or corporations would have under Part 7-2 or 7-3, or under regulations made for the purposes of Part 7-2 or 7-3, if the determination were not to be made.

             (2)  The proposed reporting obligations are the obligations that the corporation or corporations would have under Part 7-2 or 7-3, or under regulations made for the purposes of Part 7-2 or 7-3, if the determination were to be made.