New law: Government extends temporary relaxations that allow limited company shareholder 'meetings' to take place virtually

The relaxations say that all UK limited companies can, if they wish, hold shareholders' meetings (or for companies limited by guarantee, members' meetings) without shareholders having to physically gather together. The relaxations apply irrespective of pre-existing company law, or what is in the company's articles of association or other constitutional documents.

The relaxations include that:

• The meeting need not be held at any particular place.
• It may be held and any votes may be permitted to be cast by electronic means or any other means, so it may be entirely virtual.
• It may be held without a quorum being physically together at the same place.
• A member does not have a right:
  • to attend the meeting in person;
  • to participate in the meeting other than by voting; or
  • to vote by particular means.

The relaxations do not prescribe how such meetings are to be held. This is left to companies to decide – particularly, to choose technology the company believes will be sufficiently secure.

Operative date

• Now

Recommendation

• Companies should consider whether they wish to hold virtual shareholder meetings rather than face-to-face meetings, and which technology to use, under the temporary relaxations that allow them to do so until 30 March 2021.