Corporation size
A corporation’s income, assets and number of staff in a financial year determine its size. The size of a corporation changes its responsibilities under the CATSI Act. This is so corporations do an amount of administration and reporting that is fair to their abilities.
Size classifications
A small corporation will have at least 2 of the following in a financial year:
- consolidated gross operating income of less than $100,000
- consolidated gross assets valued at less than $100,000
- fewer than 5 employees.
A medium corporation will have at least 2 of the following in a financial year:
- consolidated gross operating income between $100,000 and $5 million
- consolidated gross assets between $100,000 and $2.5 million
- between 5 and 24 employees.
A large corporation will have at least 2 of the following in a financial year:
- consolidated gross operating income of $5 million or more
- consolidated gross assets valued at $2.5 million or more
- more than 24 employees.
To find the size of a corporation, search the corporation’s name in the Register of corporations.
Definition: Consolidated gross operating income is the total value of the money made by the corporation and any entities it controls
Responsibilities according to size
The size of a corporation affects its responsibilities under the CATSI Act, including:
- reporting requirements
- officers
- governance arrangements.
Small corporation governance
A small corporation with little funding and few liquid assets can work well with informal arrangements.
As a corporation grows, its need to formalise corporate governance practices also grows. This is key to good governance into the corporation’s future.
Medium and large corporation governance
Medium and large corporations need more formal arrangements. Mapping the direction and pathways for the corporation is a big job.
Directors should focus on:
- the reason the corporation exists (objectives)
- deciding on the best roads to get there (strategies)
- driving to achieve these objectives.
The directors also need to oversee action towards the objectives through management, including:
- having a say in the employment of the chief executive officer
- keeping a constant eye on risks and whether they are being managed well.
Directors for medium to large corporations should steer the corporation rather than micromanaging.
Read our fact sheet on corporation size
Learn more about changing corporation sizes in our policy statement