Today, the Government tabled in Parliament its response to the independent review of legislative amendments made in 2021 and 2022 to provide for virtual company meetings and the electronic distribution, signing and execution of company documents.
The Government has accepted or accepted in principle all recommendations of the independent panel.
This includes accepting the key recommendation of the panel to maintain the current requirement for listed companies and registered schemes to obtain constitutional permission from their members before they can hold a wholly virtual meeting.
The Government has also accepted the recommendation of the panel to conduct another review in 5 years' time of the effectiveness of the virtual meeting laws, to allow time for companies and members to become adept to the use of virtual meetings and for bodies such as ASIC, ASX and industry associations to issue guidance on appropriate conduct and use of technology at members' meetings.
The Government encourages these bodies to provide guidance well before the commencement of the further review in 5 years.
The Government is committed to ensuring the efficient and effective operation of Australian capital markets, recognising the importance of good corporate governance and the rights of members.
I thank the panel, the Hon Dr Robert Austin AM (as Chair), Ms Helen Bird and Ms Judith Fox for their considered review and extend my thanks to all stakeholders for their contributions during the consultation process.
The tabling of the Government response satisfies the requirements in subsection 1687J(6) of the Corporations Act for the Government to table a response to the review in Parliament.
A copy of the Government response is on the Treasury website.
