As a result of the recent Corporations Act reforms, small public companies limited by guarantee are generally no longer required by the Corporations Act to have an annual audit since they have been exempted from financial reporting obligations.
A small public company limited by guarantee is one which has annual revenue (consolidated where applicable) of less than $250,000 and which does not have deductible gift recipient status.
Before taking advantage of this financial reporting relief, these entities should check to see whether a financial report and/or audit continue to be applicable pursuant to the entity’s constitution or other contractual provisions with third parties that maybe in place, such as borrowing provisions.
Historically, ASIC’s consent was required where the auditor of a public company wished to resign, however as a part of the reforms, section 329(9) was added to the Corporations Act.  This section states that where an auditor resigns from a small public company limited by guarantee ASIC’s consent is not required.

For the auditor of a small public company limited by guarantee to resign, the following must occur:

  • The auditor must give written notice to the company stating the reasons why they wish to resign as auditors; and
  • The company must, within 14 days of receiving that notice of resignation, lodge Form 315 with ASIC.

The resignation is effective on the later of: