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ASIC update to upcoming AGM and Financial Reporting Requirements

ASIC has provided some information for listed and unlisted public companies with a financial period ending 31st December and are required to hold an AGM by 31st May.

No-action on AGM’s due by 31st May

Due to gathering restrictions, ASIC will not take action against an entity who doesn’t hold their AGMs by 31st May. The current ‘line in the sand’ is AGMs be completed by 31st July or such later date as ASIC advises.

Hybrid and Virtual AGMs

Entities still proceeding with their AGM by 31st May 2020 may be able to do so through a Hybrid AGM (where there is a physical location and online facilities) or a Virtual AGM (conducted solely online – though there is some doubt as to the legality).

An entity will need to review their constitution to see if it restricts meetings’ being held for a hybrid AGM and/or Virtual AGM.

ASIC will take no action on any non-compliance with the provisions that restrict virtual AGMs on the condition that members be able have a reasonable opportunity to participate. This includes;

Voting occurs through a poll;

Members can ask questions of the auditor and about Management.

ASIC will also take no action if the entity sends members supplementary instructions at least 2 business days before the AGM.

Entities with 31st March or June 30 Balance Dates

ASIC is carefully monitoring how COVID-19 is affecting financial reports and AGM obligations and may update guidance at a later date.

ASIC Press release