Go Ahead For Electronic Signing Of Documents

In the biggest shake-up of Australia's antiquated company signing requirements, the Federal Government has temporarily modified the Corporations Act 2001 (Cth) to facilitate companies to execute documents electronically.

On Tuesday 5 May, Federal Treasurer Josh Frydenberg MP issued a determination which allows companies and their officers, over the next 6 months, to use electronic software, such as DocuSign or AdobeSign, to execute their documents under s 127 of the Corporations Act and to allow for 'split execution' of documents (that is, signing of different counterparts by the officers of a company).

This addresses the pressing need created by the social distancing measures now in place, as well as the ambiguity at common law about whether two officers of a company need to be in the same room or wet-sign the exact same document in order to validly sign under the Corporations Act.¹ Further, where a company executes a document as a deed under the Corporations Act,