By Peter van Rompaey and Marian Ngo, HWL Ebsworth Lawyers
It’s that time of year again where suppliers with a financial year ending 30 June must complete their end of financial year obligations under the Oil Code of Conduct (Code).
Disclosure Documents
Suppliers with a financial year that ended on 30 June 2017 must update their disclosure document in relation to each type of fuel re-selling agreement in force at that time, by no later than 30 September 2017.
Suppliers should ensure all information in the disclosure document is up to date and that information required to be disclosed by reference to financial years are updated to reflect the financial year ending 30 June 2017.
Importantly, a new directors’ solvency statement will be required and new financial details (either financial reports or an independent audit report) must be prepared to attach to the disclosure document. Suppliers should commence this process early to ensure it is completed in time for the disclosure document to be updated.
The new version of the Code came into effect on 1 April 2017 and includes minor changes to the prescribed form of disclosure document. If these minor changes haven’t been made to supplier’s disclosure documents already, this should be done during the disclosure document update.
Marketing Funds
The following summary applies to marketing or other cooperative funds controlled or administered by or for suppliers, to which retailers may be required to contribute.
Suppliers with a financial year that ended on 30 June 2017 must prepare an annual financial statement of the marketing fund’s receipts and expenses for that financial year by no later than 30 September 2017 (Statement).
The Statement must also be audited by a registered company auditor by no later than 30 September 2017 unless 75% or more of the supplier’s retailers that contribute to the fund agree that the supplier is not required to comply with the audit requirement.
HWL Ebsworth’s team of industry specialists offer commercial and legal advice on all disciplines relevant to downstream petroleum, retailing and franchising.
Peter van Rompaey and Marian Ngo of HWL Ebsworth are both experienced in assisting suppliers to comply with their Code obligations.
