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16 December 2020 | Comment | Article by Gerallt Jones

“Meeting” Life After the Corporate Insolvency and Governance Act 2020 – Part One of our ‘Virtual Meetings’ series


In the first part of our blog series on ‘Virtual Meetings’, our Corporate and Commercial team considers how organisations can prepare for the end of the Act.

When the UK Government introduced the Corporate Insolvency and Governance Act 2020 (the Act) in June, the business community and third-sector organisations gave a collective sigh of relief. By allowing certain “qualifying bodies” to legally hold virtual, hybrid or closed meetings in lieu of fully physical meetings, the Act alleviated the stress about how AGMs and other shareholder and board meetings could take place during a global pandemic. Unfortunately, this safety blanket will soon be withdrawn when the temporary provisions of the Act come to an end on 30 December 2020. Whilst the Government may extend the provisions, the Act does not currently allow for extensions beyond 5 April 2021.**Update: the provisions of the Act have now been extended until 31 March 2021**

Now is the time to review your governing documents to make sure you can continue to hold virtual meetings after the provisions of the Act expire. They do not necessarily need to contain an express permission, but you need to be comfortable that they do not restrict the holding of a virtual meeting in any way, whether expressly or impliedly.

To avoid any uncertainty and potential for dispute, we would urge you to use this current period of grace afforded by the Act to amend your governing documents to include an express provision allowing meetings to be held electronically, including by telephone, to give you greater flexibility in future.

This will not only help if the pandemic restrictions continue but now that people are used to attending meetings virtually, it might attract a greater engagement from shareholders/members if they are able to attend meetings from the comfort of their own homes.

The virtual meetings series:

“Meeting” Life After the Corporate Insolvency and Governance Act 2020 – Part One of our ‘Virtual Meeting’ series Blog | Hugh James

Holding Remote Meetings – Part two of our ‘Virtual Meetings’ series Blog | Hugh James

Do You Need to Hold an AGM? – Part three of our ‘Virtual Meeting’ series Blog | Hugh James

Holding Remote Meetings: Advice for Unincorporated Charities and Charitable Trusts – Part Four of our ‘Virtual Meetings’ Series Blog | Hugh James

Our Top Tips for Planning and Conducting your Virtual Meetings – Part 5 of our ‘Virtual Meetings’ series Blog | Hugh James

If you would like any advice or assistance with reviewing or amending your governing documents, please contact our Corporate and Commercial Team.

Author bio

Gerallt Jones

Partner

Gerallt is a partner and head of the corporate and commercial team. Since joining Hugh James in 2005, Gerallt has led the team to be a leading player within the corporate and commercial market, advising clients including the Welsh Government, Princes Gate Water and the Development Bank of Wales.

Gerallt also has particular expertise in the sport and food & drink sectors, leading Hugh James’s relationships with clients in these sectors including the Welsh Rugby Union and Braces Bakery.

Disclaimer: The information on the Hugh James website is for general information only and reflects the position at the date of publication. It does not constitute legal advice and should not be treated as such. If you would like to ensure the commentary reflects current legislation, case law or best practice, please contact the blog author.

 

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