The commencement of S.176A of the Companies Act 2014 – enabling companies to hold General Meetings (Member meetings) electronically – has been long anticipated.
Owing its origins to the health and travel restrictions imposed during Covid in 2020 when companies needed an alternative to holding physical general meetings. The commencement of S.176A now puts the ability to convene and hold a general meeting electronically on a permanent footing. It is hoped that enabling electronic participation will encourage members who might have previously been put off by the logistics of travel to attend electronically.
S.176A provides companies with the option of convening General Meetings by way of Electronic Communications Technology (ECT) either in whole or in part. In brief ECT must:
- enable all participants to have a reasonable opportunity to participate as fully as if they were attending the meeting in person;
- be readily accessible and usable by all participants;
- ensure the meeting is clearly audible; and
- facilitate the casting of votes.
No doubt there will be learning curve, certainly, there is an onus on companies to ensure that the systems put in place to enable electronic general meetings are compliant and secure. Bless the IT staff trying to get their heads around the logistics of running electronic meetings especially if a Poll is ever required – so glad that is not my problem!
Just as holding director meetings electronically has become a standard option so, in time, will electronic general meetings. In the meantime, if you have any queries contact us anytime.