A company may be exempted from the requirements of s.296 of The Corporations Act if:
A) It is a small proprietary company within the definition of the Act.
B) A special meeting of 75 per cent of the shareholders convened under s. 293 agrees to the preparation of financial reports that do not comply with those accounting standards.
C) The report is prepared in response to a shareholder direction under s. 293 and the direction specifies that the report does not have to comply with those accounting standards.
D) It is a small proprietary company within the definition of the Act, the report is prepared in response to a shareholder direction under s. 293 and the direction specifies that the report does not have to comply with those accounting standards.

Question

Quizplus · Accepted Answer

A company can be exempted from the requirements of s.296 of The Corporations Act if it is a small proprietary company within the definition of the Act, and the report is prepared in response to a shareholder direction under s. 293, and the direction specifies that the report does not have to comply with those accounting standards. Therefore, option D is the correct choice as it mentions both the criteria for exemption.

A Company May Be Exempted from the Requirements of S