If a company does not have a SEC, it is a contravention of the Companies Act or Regulations.
- In the 1st year that they are non-compliant, you should consider a Reportable Irregularity (if the company is subject to either a statutory or voluntary audit, OR an independent review.
- However, if the non-compliance is recurring for a 2nd year, then it would be considered a material breach of fiduciary duty – as per example 20 in the IRBA RI Guide.
If you are not conducting an audit or a review, non-compliance with the Companies Act must still be considered and reported on accordingly – due to NOCLAR being applicable.
Please note that the information provided does not constitute legal or professional advice, but rather the applicability of existing theory to a given practical situation. Due care is taken to ensure that the information is correct, but it remains subjective and an interpretation of application of information.