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Filing Requirements under the International Business
Companies Act.
1. The annual audited financial statements of a licensee must be
forwarded to the Minister of Industry and International Business
in same manner as required by s.147 of the Companies Act.
2. Section 147 of the Companies Act requires that comparative
financial statement be placed before the shareholders at every
annual meeting (a) for the period from incorporation and ending
not more than 12 months after incorporation, or for the period
that began immediately after the end of the last period for which
financial statements were prepared and ending not more than 12
months after the beginning of that period and (b) the
immediately preceding financial year.
The directors of a company must call an annual meeting of
shareholders not later than 18 months after the company comes
into existence and subsequently not later than 15 moths after
holding the last preceding annual meeting.
3. Annual audited financial statements are not required for
companies that do not have assets or gross income of less than
$1 million, which includes the gross revenues, and assets of its
affiliates. (s.152(2) of the Companies Act).
4. The licensee must forward its audited financials to the Minister of
Industry and International Business in the manner provided for
above or with its licence renewal application. The renewal
application requires that you state the date of filing the last tax
return and the date of filing the last financial statements.
The requirements to file financial statements, whether with under the
IBC Act, the Companies Act or the Income Tax Act are generally
governed by the restriction of the Company from issuing publishing or
circulating copies of financial statements required under s. 147 unless
they are approved and signed by the directors of the Company and
accompanied by an auditor’s report.
Penalties under IBC Act
There are no specific penalties for failing to forward copies of the
financial statements to the Minister in accordance with s.22 of the IBC
Act. However the Minister, may by notice in writing cancel or refuse to
renew a licence where a company fails to comply with a condition of its
licence or fails to comply with any requirement of the IBC Act.
Filing Requirements under the Companies Act.
1.
An IBC is not required to file financial statements with the
Registrar in accordance with s. 152 of the Companies Act. An
IBC is only required to forward copies of the financial statements
to the Minister of Industry and International Business as set out
above.
2.
The directors of a company are required to send copies of the
financial statements to shareholders not less than 21 days
before each annual meeting of shareholders except to those
who say I writing that they do not want a copy. (s. 151).
3.
Company must keep at its registered office a copy of
financials of subsidiaries which are consolidated in financials
for company.
Penalties under the Companies Act
1.
Every person who without reasonable cause contravenes a
provision of the Companies Act or regulations is liable on
summary conviction to a fine of $5,000
2.
A company is guilty of an offence and liable on summary
conviction of fine of $5,000 if the Company without
reasonable cause fails to forward copies of financial to the
shareholder within 21 days of annual meeting.
3.
When a company is guilty, any director or officer who
knowingly authorised, acquiesced, or permitted the
contravention is also guilty of an offence, $5,000 or 6 months
in jail or both.
Filing requirements under the Income Tax Act
1.
Every company must deliver to the Commissioner a return of
its assessable income for the income year together with such
additional information as is prescribed. There is no legal
requirement under the Income Tax Act that audited financial
statements are required to be filed with returns. However,
the company has a duty not to publish or circulate copies of
its financial statements, except in the form described above,
which means that the only financial statements that may
accompany the returns are those statements audited in
accordance with the Companies Act.