Do companies still print annual reports? Australian requirements explained

Most Australian companies now publish their annual report online first, but print runs have not disappeared: they are smaller and driven by who has asked for a copy. Companies must send physical copies to members who elected hard copy and make reports available to everyone else; charities lodge online with the ACNC. This article covers those rules, the 2022 changes and why organisations still print.

This is general information, not legal advice. The rules differ by entity type, and your company secretary, lawyer or auditor should confirm what applies to you.

What must an Australian company report to its members each year?

Section 314 of the Corporations Act 2001 requires a company, registered managed investment scheme or disclosing entity that has to prepare annual reports to report to its members for each financial year. The reports are the financial report, the directors' report and the auditor's report, or in some cases a concise report instead.

Not every company has to do this. Small proprietary companies generally prepare and report only if directed by shareholders or ASIC, and some companies limited by guarantee have lighter obligations, including sending reports only to members who request them.

How must a company send annual reports to members?

Section 314 sets out how annual reports reach members. In broad terms, a company must:

• send the reports in physical form to members who have elected to receive documents that way;
• send them electronically to members who have elected electronic delivery; and
• for everyone else, make the reports readily available on a website and tell members how to access them.

A member can also elect not to be sent the reports at all. The Act has allowed this for many years, and a member who makes that choice can change it later.

Timing is set by section 315. For many public companies the deadline is the earlier of 21 days before the AGM or four months after the end of the financial year; disclosing entities and registered schemes generally have three months.

What changed for printed annual reports in 2022?

In 2022, Corporations Act amendments made electronic communication the default way of sending many meeting-related documents, while giving members a standing right to choose physical or electronic form. The Corporations Amendment (Meetings and Documents) Act 2022 received assent on 22 February 2022. Its Schedule 2, covering meetings and the sending of documents, commenced on 1 April 2022.

Under section 110E a member can elect to be sent documents, including annual reports, in physical form or electronic form. The Act also requires certain companies to tell members about their right to make these elections.

Elections members made under the old rules were carried across. A transitional provision, section 1687D, treats an earlier hard-copy election under the former meeting-document provisions as an election to be sent those documents in physical form under section 110E, and section 1687H deals with other earlier elections, including those made under section 314.

In practice this means a member who asked for printed reports years ago may still be on your hard-copy list today. Your share registry or member database is the authoritative source for that list.

Must a company keep posting reports to members it cannot reach?

A company need not keep posting hard-copy reports to uncontactable members if it follows the conditions of ASIC relief. ASIC has issued relief so entities need not keep posting hard copies of reports to members who are uncontactable, provided they follow conditions that include sending a notice to the registered address at least once a year, as ASIC's 2016 media release on its financial reporting instruments describes.

What annual reports must a charity lodge with the ACNC?

Charities registered with the Australian Charities and Not-for-profits Commission report to the ACNC each year. All registered charities lodge an Annual Information Statement. Medium and large charities also lodge an annual financial report: for reporting periods from the 2022 Annual Information Statement onwards, a medium charity has annual revenue of $500,000 or more but under $3 million, and a large charity has $3 million or more. Medium charities must have their financial report reviewed or audited, and large charities must have it audited. ACNC: annual financial reports

These are online lodgements. The ACNC does not require a charity to print a glossy annual report. A charity that is also a company limited by guarantee generally reports to the ACNC rather than to ASIC for these purposes, but its constitution may still require reports to be presented at the AGM or given to members. See reporting annually to the ACNC for the current guidance.

Why do organisations still print annual reports?

Beyond the legal minimum, printing an annual report is a communication decision. Organisations that still print usually do so for one or more of these reasons.

Members who elected hard copy. This is the floor. If members have elected physical form, they must receive physical copies, however few there are.

The AGM. Copies on the table at the meeting help members and proxies follow the discussion, particularly for older members and those who prefer paper.

Investors, lenders and partners. A well-produced report is a tangible thing to hand across a table at a roadshow, a bank review or a tender presentation. It stays on a desk in a way a link does not.

Funders and donors. For charities and member organisations, a printed impact or annual review is often the document that goes to major donors, grant-makers and patrons.

Archives and governance. Boards, libraries, historical societies and the organisation's own records often keep a bound copy of each year's report.

Staff and recruitment. A printed report can be a useful induction document and a visible record of the year.

Many organisations now produce two pieces: the full statutory report online (and printed in a modest run for members who elected hard copy), and a shorter, designed review in print for stakeholders.

How many printed annual reports should a company order?

Start from the current count of physical-form elections, then add copies for other readers:

1. Ask your share registry or membership team for the current count of physical-form elections.
2. Add copies for the AGM, the board, executives and key staff.
3. Add investor, lender, funder and partner copies.
4. Add archive and library copies.
5. Add a reserve for requests during the year.

The first number can change between years as members update their elections, so check it every time rather than repeating last year's quantity. Our annual report printing guide covers stocks, binding and a schedule that works back from your AGM.

Do Australian companies still have to print annual reports?

Australian companies are no longer expected to post a printed annual report to every member. They must report to members, send physical copies to those who have asked for them, and make the reports available to everyone else. Charities lodge online with the ACNC. Beyond those rules, a printed report is a choice made for the people who read it closely.

If you are planning a print run, your consultant can help size it, specify stock and binding, and arrange delivery to your mailing house. See annual reports and booklets or our corporate sector page.