Amendments to the Corporations Act 2001 (COVID-19)

The Corporations (Coronavirus Economic Response) Determination (No. 1) 2020 introduces modifications to the Corporations Act 2001 and now allows alternative methods of conducting company meetings and execution of company documents.

The changes are to be repealed 6 months after the commencement date of 6 May 2020.  

Changes to how company meetings can be conducted

In regard to company meetings:

• They can now be held without the need for persons to be physically present in the same place by using alternative technologies, e.g. video conferencing;

• The changes would also apply to proxies;

• Notice of such a meeting can also be provided by use of alternative technologies and must communicate the contents of the notice or provide an avenue where such contents can be viewed/downloaded.

Changes to how documents can be executed

A company can execute a document without common seal if the signatory either signs a copy in physical form or an alternative method provided that:

• a method is used to identify the person in the electronic communication; and

• a method is used to indicate the person’s intention in respect of the document.

This article is for general information purposes only and should not be relied on as legal advice. For specific and up-to-date legal advice regarding your situation please contact a qualified lawyer.