Shaping Business Outcomes – Government agrees to support companies using technology for reporting and meetings

One of our business objectives is ‘shaping the business context’.  We are delighted that the Government has released exposure draft legislation to support companies and their officers using technology to satisfy Corporations Act 2001 requirements.  This comes after extensive advocacy work by the G100 and others.  Multiple meetings were held with key Ministers and their senior staff which has resulted in legislation that will facilitate the use of technology in meetings, being able to execute company documents and send meeting-related materials.

These reforms would make the temporary measures put in place during the COVID-19 pandemic permanent.  The exposure draft also:

• allows companies to hold hybrid meetings;
• ensures members be given a reasonable opportunity to participate in meetings whether physical meeting, hybrid meeting or virtual;
• ensures that using a show-of-hands is the default method for voting at both physical and hybrid meetings; and
• allows members who hold at least 5 per cent of voting capital to have polls independently scrutinised.

The draft legislation includes modernising business communications by allowing sole directors, not also the company secretary, to electronically execute documents.