Temporary rules regarding Annual General Meetings

2020-05-11 In a time of high contagion due to Covid-19, it can be difficult for many companies to implement and participate in annual general meetings, which for many companies and associations will be held during the spring.

On 15 April 2020, a new temporary law came into force to make it easier for companies to hold annual meetings without personal presence. The Board should be able to make decisions to collect authorizations for a designated representative or to arrange postal voting, without such possibilities being in the articles of association or statutes. In this way, the number of attendees personally attending the AGM can be restricted, while giving the shareholders and members as much influence as possible.

The law covers, among other things, limited companies, economic associations, tenant-owner associations and companies in the financial market and applies until 31 December 2020.

On 30 April, the government submitted further proposals for the new law. The supplementary rules mean that companies and associations can conduct corporate and association general meetings without any physical presence. The proposal means that a general meeting can be held either by electronic connection in combination with postal voting, or by the shareholders or members only participating by postal vote. If the Meeting is held by postal vote only, shareholders and members must also be able to exercise their other rights by post. This amendment is proposed to come into force on 1 June 2020.

 

Welcome to contact us at Mazars if you have any questions.

Back to Covid-19: Mazars updates and information.