ASIC takes ‘no-action’ position on AGMs – but not electronic signatures

Following the expiry of the Corporations (Coronavirus Economic Response) Determination (No.3) 2020 (Determination No.3) on 21 March 2021, the Australian Securities and Investments Commission (ASIC) has announced that it will adopt a ‘no-action’ position on convening and holding virtual meetings.

Determination No.3 operated to facilitate the holding of meetings (including AGMs) by temporarily removing legal uncertainty around the validity of virtual meetings.

In order to provide the market with a degree of certainty, ASIC’s ‘no action’ position will support the holding of meetings using appropriate technology, facilitate the electronic dispatch of certain notices and allow public companies an additional two months to hold their AGMs.

ASIC says it will will release details of the ‘no action’ position in coming days, including guidance around the appropriate approach to conducting virtual meetings.

However, ASIC has confirmed that it will not be providing a ‘no action’ position in relation to electronic signatures.

See our report on the expiry of the pandemic Corporations Act determination and the ASIC media release for more information. 

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