ASIC has announced a "no-action position" on AGMs due to be held by 31 May 2020.

In the wake of country-wide lockdowns to slow the spread of COVID-19, companies with a 31 December financial year may find themselves unable to comply with their obligation to hold AGMs by 31 May 2020. ASIC recently adopted a formal "no action" position on AGMs that must be held on or before 31 May 2020, meaning they will take no action against an entity that either fails to comply with its 31 May deadline (provided it holds the AGM by 31 July 2020) or holds an entirely virtual meeting.

At this point ASIC hasn't indicated whether the no-action position will extend to EGMs, though we assume it would still be possible for an entity to obtain a no-action decision from ASIC in relation to critical meetings assessed on a case-by-case basis (for instance virtual EGMs requisitioned by shareholders).

If the new restrictions on non-essential gatherings and closure of venues prevents compliance with your company's AGM deadlines, there are a number of options available:

  1. cancel or postpone your general meeting – if the company's constitution allows it;
  2. hold a hybrid meeting (ie a meeting held both in a physical location and online) – although the expanding lockdowns are meaning this is becoming increasingly impossible to offer; or
  3. hold an entirely virtual meeting – through a digital platform such as Zoom, Google Hangouts or MyStake, which digitalises not only general meetings and shareholder announcements, but also company register information,

If you already have a meeting scheduled, don't worry, you can send supplementary instructions for online participation, two days or more before the meeting is held.

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