Question

1. What is meant by the term “company review date” and how is it significant?

Answer 1

A company's review date is generally the date the company was incorporated or registered (Corporations Act's 345A(1)). Company can apply to ASIC to change the review date using ASIC Form 488.

ASIC will allow a change of review date in following circumstances -

1. the review date of a company or companies with a common ultimate holding company.

2. the review date of a companies with a common officer holder.

3. the review date of a registered schemes with a common responsible entity or

4. in exceptional circumstances

Workloads or adverse financial circumstances are not considered exceptional circumstances.

Its Significance -

- Pay the annual review fee within two months of the review date

- The company’s directors must pass a solvency resolution within 2 months after the company’s review date, unless the company has lodged a financial report with ASIC within the 12 months before the review date.

- If the directors don’t pass a solvency resolution within 2 months of the company’s review date, ASIC must be notified using Form 485 within 7 days after the end of the 2-month period following the review date.