284Annual financial reporting to members

#### 284 Annual financial reporting to members 284 Annual financial reporting to members > > (1) Annual reports for members of large co-operatives > > > > (cf Corporations Act s 314 (1)) > > > > A large co-operative must report to members for a financial year by providing either of the following in accordance with subsection (5) or (9)— > > > > > (a) all of the following reports— > > > > > > > (i) the financial report for the year; > > > > > > > (ii) the directors’ report for the year; > > > > > > > (iii) the auditor’s report on the financial report; > > > > > (b) a concise report for the year that complies with subsection (3). > > > > Maximum penalty—$1,000. > > > (2) Annual reports for members of small co-operatives > > > > (cf Corporations Act s 314 (1)) > > > > Subject to any direction under section 271 or 272, a small co-operative must provide financial reports to members for a financial year that comply with any requirements prescribed by the National Regulations. > > > > Maximum penalty—$1,000. > > > (3) Concise report > > > > (cf Corporations Act s 314 (2)) > > > > A concise report of a large co-operative for a financial year consists of— > > > > > (a) a concise financial report for the year drawn up in accordance with accounting standards applying for the purposes of this paragraph; and > > > > > (b) the directors’ report for the year; and > > > > > (c) a statement by the auditor— > > > > > > > (i) that the financial report has been audited; and > > > > > > > (ii) whether, in the auditor’s opinion, the concise financial report complies with the accounting standards applying for the purposes of paragraph (a); and > > > > > (d) a copy of any qualification in, and of any statements included in the emphasis of matter section of, the auditor’s report on the financial report; and > > > > > (e) a statement that the report is a concise report and that the full financial report and auditor’s report will be sent to the member free of charge if the member asks for them. > > > (4) Where accounting standards require discussion and analysis for concise financial report > > > > (cf Corporations Act s 314 (3)) > > > > If the accounting standards applying for the purposes of subsection (3) (a) require a discussion and analysis to be included in a concise financial report— > > > > > (a) the auditor must report on whether the discussion and analysis complies with the requirements that the accounting standards lay down for the discussion and analysis; and > > > > > (b) the auditor does not otherwise need to audit the statements made in the discussion and analysis. > > > (5) Manner of providing reports > > > > (cf Corporations Act s 314 (1AA)) > > > > A co-operative may provide the reports, or the concise report, for a financial year by doing all of the following— > > > > > (a) sending, to each member who has made the election referred to in subsection (6) (a)— > > > > > > > (i) a hard copy of the reports, or the concise report; or > > > > > > > (ii) if the member has elected to receive the reports, or the concise report, as an electronic copy in accordance with subsection (6) (c)—an electronic copy of the reports, or the concise report; > > > > > (b) making a copy of the reports, or the concise report, readily accessible on a website; > > > > > (c) directly notifying, in writing, all members who did not make the election referred to in subsection (6) (a) that the copy is accessible on the website, and specifying the direct address on the website where the reports, or the concise report, may be accessed. > > > > Note— > > > > A direct address may be specified, for example, by specifying the URL of the reports or the concise report. > > > (6) Election by members as to how reports are to be provided > > > > (cf Corporations Act s 314 (1AB)) > > > > For the purposes of subsection (5) (a), a co-operative must, on at least one occasion, directly notify in writing each member that— > > > > > (a) the member may elect to receive, free of charge, a copy of the reports for each financial year, or a copy of the concise report for each financial year; and > > > > > (b) if the member does not so elect—the member may access the reports, or the concise report, on a specified website; and > > > > > (c) if the member does so elect and the co-operative offers to send the report either as a hard copy or an electronic copy—the member may elect to receive the copy as either a hard copy or an electronic copy. > > > > Maximum penalty—$1,000. > > > (7) Election continues until changed > > > > (cf Corporations Act s 314 (1AC)) > > > > An election made under subsection (6) is a standing election for each later financial year until the member changes his, her or its election. > > > > Note— > > > > The member may request the co-operative not to send them material under this section—see section 316 of the Corporations Act as applying under this Part. > > > (8) Restriction on electronic notification of members > > > > (cf Corporations Act s 314 (1AD)) > > > > A member may, for the purposes of subsection (5) (c) or subsection (6), be notified by electronic means only if the member has previously nominated that means as one by which the member may be notified. > > > (9) Providing reports > > > > (cf Corporations Act s 314 (1AE)) > > > > A co-operative may provide the reports, or the concise report, by sending each member— > > > > > (a) a hard copy of the reports, or the concise report; or > > > > > (b) an electronic copy of the reports, or the concise report, if the member has nominated that means as one by which the member may be sent the reports or the concise report. > > > (10) Strict liability > > > > (cf Corporations Act s 314 (1A)) > > > > An offence based on subsection (1), (2) or (6) is an offence of strict liability.