• Is the consolidated gross operating revenue for the financial year of your company (including any entities it controls) $10 million or more?
• Is the value of the consolidated gross assets at the end of the financial year of your company (including the entities it controls) $5 million or more?
• Did your company and the entities it controls employ 50 or more persons at the end of the financial year?

If you have answered yes to two or more of the above questions, your company is a large proprietary company.

Your company may be a large proprietary company in one year and not in another.

The concept of control relates to the abililty of one entity being able to dominate either directly or indirectly, the decision-making of another entity in regards to policies of a financial or operating nature. The control is usually exercised in a manner which results in both entities pursuing the same objectives.

If you have any questions regarding the status of your company please contact us.

Large proprietary companies have extra reporting obligations under the Corporations Act.

These include:

• The obligation to prepare and lodge with ASIC financial reports and a directors' report each financial year
• The financial reports consist of:-
  a) financial statements for the year
  b) notes to the financial statements; and
  c) the directors' declaration about the statements and notes
• The financial reports must comply with the accounting standards
• The financial reports must be audited and an auditor's report is required
• The company must send either the financial reports, the directors' report and auditor's report to its members or send its members a concise report for the year that complies with the Corporations Act.