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CS Professional · Compliance Management, Audit and Due Diligence · Compliance Framework

Sunrise Textiles Ltd, a listed company, is finalising its Board's report. The directors want the Directors Responsibility Statement to cover compliance systems. Under section 134, which statement must the DRS contain about applicable laws?

The Directors Responsibility Statement must say that the directors devised proper systems to ensure compliance with all applicable laws, and that those systems were adequate and operating effectively. It does not require a certificate, personal verification of filings, or a claim of no defaults.

  1. AThat the directors had devised proper systems to ensure compliance with all applicable laws and that such systems were adequate and operating effectivelyCorrect
  2. BThat the company has obtained a compliance certificate from a practising company secretary for every law
  3. CThat the directors personally verified every statutory filing made during the year
  4. DThat the company has never defaulted under any applicable law during the year

Explanation

Section 134(5)(f) requires the DRS to state that the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively. It does not require a certificate, personal verification or a statement of zero default.

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