Policy on Enforcement of Limited Company Reporting

[jotoho]

Scope​

This Ministry of Economic Affairs policy aims to regulate the consequences of tardiness in regards to regular Limited Company reports.
It does not apply to MEA-ordered audits.

Rules​

All Limited Company public disclosures are automatically due on the 1st of each calendar month, without requiring a reminder from the MEA and shall be published to the Limited Company's public disclosure thread on the MEA Discord.

Failure to provide the public disclosure on the due date shall result in fines up to the following:

1. Reporting Tier 1: daily fine of 100$
2. Reporting Tier 2: daily fine of 250$
3. Reporting Tier 3: daily fine of 500$

These reporting tiers are defined in the Business Reform Act.

All Limited Companies are extended a grace window of seven days (until 12 AM UTC on the 8th).
Public Disclosures that were not provided on the due date but before the expiry of this grace period shall have their associated tardiness fines waived.

In exceptional circumstances, the Minister of Economic Affairs may extend the grace period for a Limited Company disclosure by up to 7 additional days.

The Ministry of Economic Affairs warns all Limited Companies that severe or frequent cases of tardiness may result in additional consequences as are available to the Ministry, including but not limited to, the auditing of your business, at the Ministry's discretion.

Legal Foundation​

As prescribed by the Business Reform Act, Limited Companies are required to provide monthly reports to the Ministry of Economic Affairs and the broader public, but it fails to define how violations of this requirement are to be punished.

Pursuant to the Governing Structure Act, the Ministry of Economic Affairs is charged with "Enforcing compliance with national corporate standards" and may create policies for the performance of their duties. In the absence of legislation detailing how tardy reports are to be punished, this policy shall fill the gap left by Parliament.

In case of conflict between this Policy and any law applicable in the Azalea Isles, this Policy shall be superseded to the extent necessary to ensure legal compliance.

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jotoho
Minister of Economic Affairs​