Acting for You, February 2022

Permanent modernisation of the Corporations Act delayed 

In a disappointing development, the legislation, the Corporations Amendment (Meetings and Documents) Bill 2021 failed to pass Parliament on the last day of sittings for 2021. This was the legislation to introduce the permanent reforms on virtual and hybrid AGMs and electronic execution and sending of documents. Governance Institute has been involved in the consultation process on these measures for almost two years, providing members’ views and practical experience to help improve the drafting. Governance Institute understands the Government’s intention is for the bill to pass in the first sittings in 2022. We will continue to liaise with key stakeholders in support of the bill, as this is an important reform opportunity to modernise Australia’s regulatory frameworks and enhance the shareholder experience. We have conveyed members’ concerns around requiring a constitutional amendment to hold a fully virtual AGM, particularly in light of rising COVID case numbers and the fact that the temporary amendments enabling meetings and executing documents using technology cease on 31 March 2022. 

We will continue to keep members updated on this issue.  

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