Earlier this year and in recognition of the unprecedented circumstances presented by the COVID-19 pandemic and resulting lockdowns, the Federal Government introduced temporary amendments to the Corporations Act 2001 (Cth) (Act) to provide regulatory relief and flexibility for companies and other regulated entities in how they could conduct their business and meeting their legal obligations in a COVID world. In short, these changes:
Relief extended to 2021
Originally scheduled to expire in November 2020, the changes will now be extended until 21 March 2021. In an announcement on 31 July 2020, the Treasurer noted the extension was intended to provide certainty to businesses, and to give them the flexibility to continue operating in circumstances where travel restrictions and social distancing would otherwise make it difficult.
A permanent solution?
While no decision has been made, the Government is said to be considering whether to make the measures permanent, a decision that would be welcomed by both the legal and corporate fraternities as a move to clarify the ambiguities that have long surrounding electronic execution and bring the Act into line with the realities of modern day business.
Author: Georgia Milne
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