Updates from the Companies Office

In this issue we discuss why companies that no longer need to register financial statements may still need to have their financial statements audited. We also note the Companies Office's new fee structure.

Companies Act audit requirements under review

Amendments to the Financial Reporting Act have resulted in some companies no longer being required to register financial statements with the Companies Office.  However, the Ministry of Economic Development has pointed out that such companies may still be required to appoint an auditor and have their financial statements audited in compliance with section 196(3) of the Companies Act 1993.

Sections 19 and 19A of the Financial Reporting Act 1993 introduced changes to requirements for registration of financial statements for some companies.  However, section 196(3) of the Companies Act 1993 requires the following companies to appoint an auditor to audit their financial statements, regardless of whether they are required to register them in accordance with the Financial Reporting Act:

• any company that is a subsidiary of a non-New Zealand company;

• any company in which 25 percent or more of the voting power at a meeting of the company is held by a subsidiary of a non-New Zealand company or a non-New Zealand resident; and

• any company that is an issuer within the meaning of section 4 of the Financial Reporting Act.

However, it should be noted that the audit requirements of section 196(3) of the Companies Act are currently under review and the ambiguity may be remedied through legislation to be introduced later this year.

Companies Office reviews fees

The Companies Office is introducing a new fee structure from July. The changes include:

• The fee to incorporate a company over the internet will increase from $50 to $150 and a fee of $250 will apply where paper incorporation documents are lodged.

• There will no longer be a fee to view documents on the Companies Register.

• The fee for re-registration of financing statements on the Personal Property Securities Register will be reduced from $5 to $3.

• The fee to file financial accounts will be increased from $100 to $250.

Enquiries and information

For more information on any of the cases, articles and features in Commercial Quarterly, please email Diane Graham or call her on 64 9 916 8849.