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Path forward for corporate regulation in wake of COVID
A route towards revolutionising the use of technology in corporate regulation has been flagged in an interim report, opening up avenues for a post-COVID legal landscape.
Naomi Neilson
The Law Council of Australia welcomed an interim report of the financial and regulatory technology inquiry and its recommendations to make temporary reforms introduced in response to COVID-19 permanent so technology gains are not lost.
President Pauline Wright said the national legal profession supported the calls for the technology enablers to have greater prominence in corporate regulation as long as the implementation considers those who may be exposed to digital exclusion.
“The report rightly acknowledges the critical role of technology enablers in supporting the continued operation of businesses and other entities throughout the pandemic,” said Ms Wright.
“The crisis has forced consideration of alternative methods for commercial activity to continue. This has included a particular reliance on new technologies in the context of social distancing measures.”
Ms Wright added that there are significant opportunities in a greater reliance on legal technology in areas such as virtual annual general meetings, electronic signatures and remote witnessing of documents. However, the implementation should be conditional on the safeguards that ensure there are no unduly exclusions.
“Challenges associated with a default dependence on face-to-face interaction will likely resurface during future crises, and are persistent issues in regional, remote and rural areas. The recommendations of the committee as they relate to technology-neutral corporations law are a welcome step towards ensuring that we maintain pace with modern global business practices,” she said.
Naomi Neilson
Naomi Neilson is a senior journalist with a focus on court reporting for Lawyers Weekly.
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