At the height of the COVID-19 crisis last year, the government allowed companies to hold virtual annual general meetings and to sign documents electronically instead of in person.The measures expired on March 21, and the government failed to pass legislation through parliament last week to extend them as planned until September 15.It is understood this has caused widespread confusion among businesses, including banks which can no longer legally have company loan documents signed electronically.Industry sources said the blunder raised questions about the government’s commitment to supporting the digital shift for businesses.On Tuesday, the Australian Securities and Investments Commission said it would not take action against businesses which needed to continue holding virtual meetings, although it is not extending that relief to electronic signatures.“It is important that business has certainty in the current environment,” commissioner Cathie Armour said.“ASIC’s position is intended to facilitate businesses to hold their meetings effectively during the ongoing pandemic where there is still uncertainty around restrictions on gatherings and travel.”Law Council of Australia president Dr Jacoba Brasch QC said earlier that the council was “deeply concerned” by the issue, especially when the measures were “still needed” by businesses.“Given the unpredictable nature of the pandemic, the Law Council is concerned that Australian businesses will be unduly impacted should further outbreaks occur,” Dr Brasch said.“The Law Council asks the government to consider invoking an emergency response to avoid the creation of systemic risk from corporations holding non-compliant meetings or the risk that documents are not validly executed and ensure the stability in the sector, while allowing the Senate committee time to complete its deliberations without undue prejudice to Australian businesses.”The legislation passed in the House of Representatives on March 17 but is yet to move through the Senate. While the government remains committed to its passage, the Senate does not sit again until May.Earlier this year, when Josh Frydenberg announced the measures would be extended, he said permanent changes for electronic document signing would be finalised by September.“Extension of this temporary relief will allow businesses to continue to comply with their regulatory requirements as they continue to deal with and emerge from the COVID-19 pandemic,” the Treasurer said last month.Mr Frydenberg said on Tuesday night: “Labor and the cross-bench referred the legislation to yet another committee, which doesn’t report back until June, well after the temporary measures were due to expire.”“The government is committed to securing the passage of this bill through the Senate and continues to work closely with the Australian Securities and Investments Commission on interim relief the Commission can provide,” he said.
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