How to meet AGM requirements despite COVID-19 restrictions

Between 'social distancing' and the Government's ban on non-essential gatherings, public companies are finding it increasingly difficult to comply with AGM requirements. This article considers the options available to companies needing to hold an AGM in the coronavirus climate.

Requirement to hold an AGM

Section 250N of the Corporations Act 2001 (Cth) outlines that a public company with more than one member must hold an annual general meeting (AGM):

1. within 18 months following registration; and
2. at least once each calendar year, and within five months after the end of its financial year.

The penalty for failure to comply with this requirement is $6,300 for individuals and $63,000 for bodies corporate. Public companies with a 31 December end of financial year need to hold an AGM by 31 May 2020. With this deadline approaching, companies should make alternative arrangements soon. We have compiled a list of options below for companies to consider.