Temporary changes to the Corporations Act 2001 (Cth) (Corporations Act) facilitating electronic execution of documents, which were originally introduced as a temporary COVID measure in 2020, have now been made permanent.
Following the passage of the Corporations Amendment (Meetings and Documents) Act 2022 (Cth), the new rules allow companies to execute contracts, deeds, meetings-related and company documents electronically. They also permit companies to hold hybrid meetings (as of right) or wholly virtual meetings (if a company constitution permits it).
It is envisaged that the shift to ‘technology neutral’ laws will allow companies to conduct business more efficiently and cost effectively, whilst maintaining a sufficient level of security for identifying the signatory and confirming their intent to be bound by the document.
