ACRA Launched Colour-coded Compliance Rating
The rating immediately tells the reader whether a company is up-to-date with the holding of its AGM with up-to-date financial statements and filing of its AR.
ACRA’s online Business Directory Search will be enhanced to include a colour-coded compliance rating for locally incorporated companies to denote whether a company is in compliance with the Annual General Meeting (AGM) – including the tabling of up-to-date financial statements – and Annual Returns (AR) requirements.
Compliant companies will be given a green tick and conferred a Certificate of Compliance, while non-compliant ones will have a red cross rating. [ View mock-up screenshots ]
| Description | |
|---|---|
 |
Annual General Meeting, Annual Return and Accounts Up-to-date |
 |
Annual General Meeting, Annual Return or Accounts Late |
|
-
|
Not Applicable / Company Status is not “Live” |
The compliance rating for the company will change once the company breaches any of the provisions under section 175, 197 or 201 of the Companies Act (Cap. 50) or the company’s status has changed.
What is the purpose of providing colour-coded compliance rating?
The rating immediately tells the reader whether a company is up-to-date with the holding of its AGM with up-to-date financial statements and filing of its AR.
As an added service, with the ratings, ACRA will also provide the date by which the company must hold its next AGM to table up-to-date financial statements to be in compliance.
Why is the colour-coded compliance rating introduced?
- To provide recognition to companies that are in compliance and to enable them to use their good track record for brand equity purposes – prompt disclosure and good compliance translate to good corporate governance.
- To serve as an incentive for those not in compliance to strive to do better and be on time in their next AGM and annual filing.
- To provide for better transparency to the relevant companies’ stakeholders such as shareholders, creditors, financial institutions by publicising the filing records of the company. This could also assist them in making better informed decisions when dealing with the company concerned.
Source: ACRA Website
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