Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698144405728.pdf (Micronesia, Federated States of)
EIGHTEENTH CONGRESS OF THE FEDERATED STATES OF MICRONESIA SECOND REGULAR SESSION, 2013 C.B.

NO.

18-57 A BILL FOR AN ACT To further amend title 36 of the Code of the Federated States of Micronesia, as amended, by inserting a new section 106A to require certain profit corporations to file their audited financial statement with the Office of the Registrar of Corporation, and for other purposes.

BE IT ENACTED BY THE CONGRESS OF THE FEDERATED STATES OF MICRONESIA: 1 Section 1.
Title 36 of the Code of the Federated States of 2 Micronesia, as amended, is hereby further amended by inserting a 3 new section 106A, to read as follows: "Section 106A.

Audited financial statement.

(1) This section applies only to a profit corporation in the Federated States of Micronesia with capitalization of at least $500,000 or total assets of at least $1,000,000.
A profit corporation shall file with the Office of the Registrar of Corporation an audited financial statement of the full calendar year immediately following the effective date of this act, or immediately following the 3-year period if subsection (4) is applicable.

The audited financial statement must be prepared and signed by a certified public accountant.

(2) This section does not apply to the following: (a) bank as defined under title 29.
(b) person licensed or registered to engage in insurance business under title 37. any State of the FSM or the National Government once such government has made a contribution of funds to the S CBL 18-61 C.B.

NO.

18-57 Account; (c) major corporation as defined under title 54.

(3) “Total asset” means the gross asset of a corporation.
(4) A profit corporation created after the effective date of this act is exempt from filing an audited financial statement for the first 3 calendar years.

Thereafter, filing of audited financial statement shall be made in accordance with subsection (5).

(5) Within 6 months following the close of each calendar year, a profit corporation referred to in subsection (1) shall file its audited financial statement with the Office of the Registrar of Corporation.
(6) It is the duty of corporate management to furnish shareholders with the audited financial statement within 90 days from the period provided in subsection (5).

(7) Failure of a corporation to comply with this section shall result in a penalty of $1,000.

If a violation of this section occurs more than twice, the penalty shall include suspension or revocation of charter.” 2 of 3 C.B.

NO.

18-57 1 Section 4.


This act shall become law upon approval by the 2 President of the Federated States of Micronesia or upon its 3 becoming law without such approval.

4 5 Date: 9/11/13 Introduced by: /s/ Florencio S. Harper___ Florencio S. Harper (by request) of 3