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AGM laws are finally on the horizon. Whether they arrive in time for the fast-approaching peak AGM season is another matter, writes Megan Motto.
With the peak AGM season only months away, many companies currently find themselves in a very challenging period as they decide between physical, hybrid and virtual formats. Adding an extra element of complexity, many organisations are drafting their notices of meetings against a backdrop of COVID flare-ups and an unclear regulatory situation.
The plan is for the exposure draft to become a bill that is submitted to the Parliament, and hopefully passed, in late August. This doesn’t give companies much time to prepare.
The proposed laws
In its current state, the exposure draft legislation would:
While overall supportive of the bill, Governance Institute of Australia has some key concerns.
These include:
A new sense of urgency
The lockdowns currently underway in several states are a reminder about the urgency of finding a resolution on this very ongoing issue. The issue of AGMs, and what format they can legally be held in, is at risk of becoming the never-ending story.
We know many organisations are clamouring for some certainty in these uncertain times, especially with the peak AGM season fast approaching. Clarity on this issue will also benefit shareholders. We welcome the proposed permanent laws but hope our concerns are taken on board.
Preparing for your AGM in the current environment
While organisations await some further certainty on this issue and for the new laws to be debated in the Parliament, there is still plenty that can be done to best prepare for the upcoming AGM season.
Here are some steps that can be taken now: