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ARTICLE · 18 MAY 2021

Update on electronic execution under the Corporations Act

Panetta McGrath
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Temporary laws that allowed electronic execution have expired. Where are we now?

AustraliaCorporate/Commercial Law
David McMullen
David McMullen
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During the initial height of the COVID-19 pandemic, temporary changes were made to the Corporations Act 2001 via the Corporations (Coronavirus Economic Response Determination (No. 3) 2020 ("Determination").

This Determination temporarily allowed companies to execute documents electronically and permitted the split execution of documents. In other words:

  • The definition of a 'document' was amended to include those in electronic form.
  • Execution of documents under the Corporations Act was able to occur electronically, provided the method of execution was reliable and appropriate for the purpose of identifying and indicating the intention to be bound.
  • For companies requiring two signatures to execute a document (from two Directors, or a Director and Company Secretary), split execution was permissible. That is, the company's signatories could sign separate counterparts, instead of needing to sign the same copy of a document.

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