Plain language law

New Zealand law explained for everyone

Companies Act 1993

Accounting records and financial reporting - Financial reporting

196: Overview

You could also call this:

“This section summarises which companies must follow financial reporting rules”

This part of the law is about financial reporting requirements for companies. You need to follow these rules if you’re part of certain types of companies.

You must follow these rules if you are:

  • A large company
  • A large overseas company doing business in New Zealand
  • A company with 10 or more shareholders (unless all the shareholders decide not to follow these rules)
  • A company with fewer than 10 shareholders, but only if shareholders who own at least 5% of the voting shares ask the company to follow these rules

Remember, this is just a simple guide to help you understand what this part of the law is about. It doesn’t cover everything in detail.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320877.

Topics:
Business > Industry rules
Business > Fair trading
Previous

195: Place accounting records to be kept, or

“Where you must store your company's accounting records”

Next

197: Non-application of subpart if alternative financial reporting duties under financial markets legislation, or

“Companies with other financial reporting duties don't need to follow these rules”

Part 11 Accounting records and financial reporting
Financial reporting

196Overview

  1. This subpart imposes financial reporting requirements on—

  2. every large company; and
    1. every large overseas company that carries on business in New Zealand; and
      1. every other company with 10 or more shareholders (unless the shareholders of the company opt out of compliance); and
        1. every other company with fewer than 10 shareholders if shareholders of the company holding at least 5% of the voting shares require the company to comply.

          1. This section is only a guide to the general scheme and effect of this subpart.

          Notes
          • Section 196: replaced, on , by section 30 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).