Government measures in key jurisdictions 3rd edition final - Flipbook - Page 142
United Kingdom
Company
law matters
Have any measures
been put in place to
accommodate social
distancing (such as
remote general
meetings)?
142
•
The UK Government announced on 28 March 2020 that legislation will be introduced to ensure
that those companies required by law to hold annual general meetings (AGMs) (i.e. public
companies and private companies that are traded companies) will be able to do so safely and in a
manner consistent with the Stay at Home Measures.
•
On 26 June 2020, the Corporate Insolvency and Governance Act introduced measures to
temporarily allow companies that are under a legal duty to hold an AGM to hold a meeting by
other means (i.e. virtually) even if the company’s constitution would not normally allow it.
•
Allowing companies to ignore the process set out in the existing articles will ensure that
shareholders’ rights will be reserved by allowing them to vote on issues virtually. These measures
ensure that directors are not exposed to liability for a lack of shareholder approval of certain
actions taken by the company.
•
These measures will apply to the whole of the United Kingdom retrospectively from 26 March
2020 to 30 September 2020 in order to cure any constitutional defects arising as a result of the
current crisis.
•
Shareholder meetings and decision making during Covid-19 lockdown.
Government measures in key jurisdictions