In Dynamic Supplies Pty Ltd v Australian Securities and Investments Commission [2010] FCA 806 the company failed in its action to review ASIC’s decision not to exempt the company from the obligation on large proprietary companies to prepare and lodge certain financial reports and directors’ reports which are placed on the public record and are available for scrutiny.

Whilst there is power for ASIC under section 342 of the Corporations Act to give relief on certain grounds including that preparing and lodging the reports would “impose unreasonable burdens” on the company, the Federal Court refused to review the Administrative Appeals Tribunal decision not to review ASIC’s decision not to give such relief.

A company is a large proprietary company because it meets two of the three criteria set out in s 45A(3) of the Corporations Act. In summary, they are that the company has: an annual revenue of $25 million or more; gross assets at the end of a financial year of $12.5 million or more; or 50 or more employees.