ASIC has announced a "no-action position" on
AGMs due to be held by 31 May 2020.
In the wake of country-wide lockdowns to slow the spread of
COVID-19, companies with a 31 December financial year may find
themselves unable to comply with their obligation to hold AGMs by
31 May 2020. ASIC recently adopted a formal "no action"
position on AGMs that must be held on or before 31 May 2020,
meaning they will take no action against an entity that either
fails to comply with its 31 May deadline (provided it holds the AGM
by 31 July 2020) or holds an entirely virtual meeting.
At this point ASIC hasn't indicated whether the no-action
position will extend to EGMs, though we assume it would still be
possible for an entity to obtain a no-action decision from ASIC in
relation to critical meetings assessed on a case-by-case basis (for
instance virtual EGMs requisitioned by shareholders).
