Legislation formalising listed companies’ use of electronic signatures has passed both houses of parliament, more than two years after it was first proposed.
Early in the Covid-19 era, the government acknowledged the need to accept e-signatures, but its first attempt to pass legislation lapsed in March 2021.
In response, the Australian Securities and Investment Commission (ASIC) said it would take no action against companies over virtual meetings or e-signatures on regulatory submissions.
ASIC’s “no action” positon supported virtual meetings; permitted electronic meeting notices; and allowed public companies extra time to hold AGMs during the pandemic.
An exposure draft of the now-passed legislation was first published in June 2021, and it was finally introduced to federal parliament in November 2022.
It allows all documents covered by the Corporations Act to be signed electronically, and allows the fixing of the common seal of a corporation to a document to be electronic.
It also allows virtual hearings and examinations by corporate regulators, as well as minor changes such as to how corporate notices are to be published.
The explanatory memorandum [pdf] to the bill predicts around $115 million in annual savings to business from the measures, well below the more than $4 billion over 10 years predicted by the former government in 2021.