The Government is seeking stakeholder views on exposure draft legislation that makes permanent changes to the Corporations Act 2001 in relation to virtual meetings and electronic document execution. By modernising the Corporations Act 2001 and associated regulations through these reforms, companies have the opportunity to utilise technology to satisfy their legal obligations.
The reforms make permanent the temporary relief, which allows companies to hold meetings virtually, send meeting-related materials electronically and validly execute documents electronically. In response to stakeholder feedback, the reforms proposes additional enhancements to ensure corporate accountability and transparency. Overall, the permanent reforms will provide companies flexibility when engaging with their shareholders, reduce costs and drive efficiencies.
On 15 June 2020, the Government also announced that Modernising Business Communications will be a priority area for its Deregulation Taskforce. As part of this work, the Government will separately consult on how other Commonwealth legislation may be made technology neutral.
Public consultation on the exposure draft legislation and explanatory material will close on 6 November 2020.