Annual returns plan criticised

Press, 26 November 1982, Page 26

Annual returns plan criticised

Parliamentary reporter

Companies and accountants have objected to planned new methods of filing annual returns. The Companies Amendment Bill, now before the Parliamentary Commerce and Energy Select Committee changes the rule that annual returns be filed each year, in general by November 30.

Companies will be required to file returns on the month allocated by the Registrar of Companies. The Society of Accountants objected that their representations on the draft bill had been ignored. The provision

would increase costs to companies by requiring two filings of information each calendar year — the annual return, and annual accounts and reports required by the Commercial Affairs Division of the Justice Department after every annual general meeting. A company’s annual return date was bbund to be at variance with the annual meeting date. Many private companies were administered by chartered accountants, who prepared and filed annual returns as part of a package of preparation of annual accounts, returns of income and other services. Signatures were required for the annual returns and the other documents. This would require double attendance on officers of the company, and create other administrative problems, said the society. The requirement to have annual returns signed by both a director and the secretary served little purpose. A firm of Wellington accountants, Odlin and McGrath, said that the requirement to file annual returns should be abolished. Requirements to notify changes in directors, secretaries or registered office gave the information sought in the annual return.

“If the compelling reason for keeping the annual return remains, then the requirement to hold annual meetings within 15 months of the previous annual general meeting should be dropped,” said the Firm.

This would get round the tendency of companies to hold annual meetings in the last three months of. each year, and the resulting pressure on the Commercial Affairs Division.

Companies could then hold annual meetings once each calendar year, at which time annual. accounts would be presented. The annual return

arising from the annual meeting could then be filed within 30 days. Several submissions urged this staggered filing of annual returns. A chartered accountant, Mr A. G. Stewart, said that it would be extremely difficult and considerably more work

to keep track of each client to make sure a return was filed in the month allocated for that firm by the registrar. The E.M.C.O. group of companies said that subsidiaries could be allocated months different from their holding companies.