Acting for You, November 2021
Permanent modernisation of the Corporations Act
The Commonwealth Government introduced legislation to Parliament on 20 October to enable permanent reforms on virtual and hybrid AGMs and electronic execution and sending of documents. Governance Institute has indicated it is broadly supportive of the bill. This is an important reform opportunity to modernise Australia’s regulatory frameworks and enhance the shareholder experience. However, we have conveyed members’ disappointment that organisations will be required to amend their constitutions to hold a fully virtual AGM. Members advocated for a less prescriptive approach on this issue in earlier consultation to accommodate the wide range of entities regulated by the Corporations Act, including charities and not-for-profits. It is however, important the reforms are passed by Parliament promptly to provide much-needed regulatory clarity. We are advocating to Parliament that any review process should not create further uncertainty. We will continue to keep members informed as the bill progresses.