ASIC has released a ‘no-action’ position on AGMs to enable listed and unlisted public companies with 31 December balance dates to either postpone their AGM by two months (no later than 31 July 2020) or hold their AGM using technology.
ASIC is also considering how COVID-19 may impact and delay financial reporting and whether it needs to issue further guidelines for this.
Hybrid and virtual AGMs
A company that has already sent out its notice of meeting can now:
- Send a supplementary notice electronically (at least two business days before the scheduled AGM) to inform that the meeting will be held on-line. The notice can be sent via email, placed on the company’s website or by market announcement;
- Be held as a hybrid AGM – where there is both a physical location and online facility; or
- Be held entirely online as a virtual AGM.
Companies holding hybrid and virtual AGMs must make sure that members are able to ask the auditor and management questions and vote by poll.
There are additional legal issues around a purely virtual AGM (questions about the validity of resolutions) which ASIC has issued further guidance on. If your company wishes to hold a virtual AGM, please contact us and we can assist you with navigating these legal issues successfully.
Postpone AGM
ASIC has indicated that companies may postpone their AGM until 31 July 2020. If notices of meeting have already gone out, electronic supplementary notices can be sent out to postpone – and should be sent out to postpone if the company is unable to hold either a hybrid or virtual AGM.
How can Automic Group help?
Our team can advise on whether holding a virtual or hybrid AGM may be viable for your company and deliver this using our technology. Additionally we can also give you guidance on how to ensure that any resolutions at such an AGM are valid and binding.
If you have any questions, please contact:
Our team by clicking here.
View the full ASIC guidelines for meeting upcoming AGM and financial reporting requirements here.
