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The temporary relief measures will see companies able to hold annual meetings and sign documents virtually for another six months as they face continued pandemic disruption.
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Frydenberg renews virtual AGM relief
12 August 2021
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9 minute read
Treasurer Josh Frydenberg on Wednesday announced the extension of red tape relief that will allow companies to hold their annual meetings virtually, and sign and share documents electronically until 31 March 2022.
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He said the relief was extended to offer businesses certainty as listed and unlisted companies are expected to hold annual meetings.
“This relief ensures that companies can meet their obligations as they continue to deal with the uncertainty of the COVID-19 pandemic,” Mr Frydenberg said.
“In particular, the renewed relief will give much-needed certainty to listed and unlisted companies that are expected to hold an annual general meeting later this year and early next year.”
The Treasury amendment, which will loosen regulatory requirements under the Corporations Act, will also give ASIC permanent powers to provide individual or class order regulatory relief to business meetings and documents.
“ASIC will be able to provide this relief in circumstances beyond companies’ control, such as those caused by the COVID-19 pandemic,” Mr Frydenberg said.
It’s the second time Mr Frydenberg has extended the relief measure, after he announced in February that it would be extended from March to September, with a view to make the changes a permanent fixture.
The same message was doubled down upon on Wednesday, when he said the Morrison government would look to introduce similar, permanent reforms.
“With the extension of this temporary relief, the government will now seek to introduce permanent reforms later this year to give companies the flexibility to use technology to hold meetings, such as hybrid meetings, and sign and send documents,” Mr Frydenberg said.
“The government is committed to ensuring that businesses can comply with their regulatory requirements while dealing with the COVID-19 pandemic and that regulatory settings going forward support Australia’s economic recovery.”
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