If you would like any further information with regards to holding a virtual AGM, call 01332 226 189 or complete the form below.
A brief guidance note on the ability to hold a fully virtual AGM during the COVID-19 pandemic.
23 October 2020
Insight
Company law has for quite some time permitted electronic attendance, speaking and voting at meetings. However, there has always been uncertainty around whether an entirely virtual meeting is permissible (where every attendee participates by electronic means), as a quorate number of participants would not be physically together.
In the midst of the COVID-19 pandemic, naturally, a large gathering of people in an enclosed room is ill-advised. In recognition of this, the Corporate Insolvency and Governance Bill 2019-21 (the CIGB) was passed and came into force on 26 June 2020.
The CIGB expressly waives any need to hold physical meetings and confirmed any AGM (or other general meeting or class meeting) may be held by entirely virtual means. Therefore, no physical location for the meeting would be required, speaking and voting may take place virtually, and no attendees are required to be physically present together to constitute a quorum.
The provisions of the CIGB are temporary and have recently been extended to apply until 30 December 2020. However, as the second wave of COVID-19 gathers momentum and is expected to remain prevalent throughout the winter months, it is likely the CIGB provisions will be further extended.
The CIGB also offers further comfort in that its provisions will override any contrary aspects of a company’s constitutional documents, meaning amendments to articles of association are not required to benefit from the flexibility of the CIGB. Additionally, the CIGB applies retrospectively to meetings held from 26 March 2020.
For those companies looking to take advantage of the CIGB, the usual requirements of a valid notice, quorum, and procedural obligations should still be adhered to, albeit via fully virtual means at the meeting itself.
Please note, the information included in this update is correct at the date of publishing.
Related Services
New legal duties require organisations to handle data protection complaints correctly. Learn what you need to do now.
Read More
Download expert guidance on UK trade union reforms and prepare your organisation for Employment Rights Act changes.
Read More
How suppliers’ use of AI can create IP, data protection, and contractual risks, and how businesses can manage them.
Read More
Download our Employment Rights Act Resource Pack to navigate key 2025–2027 employment law changes with expert guidance and practical tools.
Read More
A clear roadmap from our Employment & HR Law team on upcoming Employment Rights Bill changes employers need to prepare for.
Read More
Drop shipping is growing fast. Find out how the right contracts can protect your margins, brand and legal position.
Read More
Learn about fiduciary duties, commission disclosure, and legal compliance after the Expert Tooling v Engie ruling.
Read More
Learn how Rukhadze v Recovery Partners reinforces strict fiduciary duties and what it means for your business and governance.
Read More
The ICO and CMA's joint statement outlines new AI in finance regulations, focusing on data protection, competition, and consumer safeguards.
Read More
A decade of progress – but the fight against modern slavery isn’t over, we highlight how businesses can meet stricter transparency rules.
Read More
Figures around employee pay and entitlements are a minefield for HR professionals, constantly changing and evolving.
Read More