Important Information for all CEOs: Submit your annual financial statements in time!

2012/01/12 | Mag. Roman Tobeiner

Institutional practice shows, that the timely disclosure of annual financial statements is being monitored strictly. A breach of the obligation to disclose can lead to imposition of high administrative penalties.

It's the duty of legal representatives of corporations (managing directors and board members) to disclose their company's annual financial statements at the court keeping the commercial register not later than nine months after the balance sheet date. Extensions of this deadline are not prescribed by law.

The Austrian Budgetbegleitgesetz 2011 (in force since January 1st 2011) brought a tightening of rules regarding the breach of disclosure obligations. A breach of these obligations can lead to fines from 700 EUR up to 3.600 EUR. The penalties can be imposed either on the corporation or its CEOs or board members.

The imposition of penalties can be abstained from in case of an unforeseen or unavoidable event. If an event is either unforeseen or unavoidable needs to be determined on a case-by-case basis. Audits or unsolved legal issues are not considered a free pass for a delayed submission of annual financial statements according to Austrian supreme courts.

Another penalty can be pronounced if disclosure isn’t submitted for another two months after expiry of the disclosure deadline. Subsequent disclosure doesn’t terminate the proceedings, it merely prevents the imposition of further penalties.

Objections against a penal order can be lodged within 14 days of the delivery. The Specht Rechtsanwalt GmbH is happy to assist you with any questions concerning possible grounds of opposition.