COVID-19: What it means for incorporated associations with upcoming AGMs

1 minute read + PDF download  05.05.2020 Steven Grant, Belinda Pinnow

With social distancing restrictions across Australia, incorporated association AGMs may need to adapt. Find out how.

Determine the position for your association

Most incorporated associations are required to hold an annual general meeting (AGM) in accordance with the provisions of their rules / constitution and relevant state and territory legislation. However, the current social distancing restrictions imposed by Australian governments in response to COVID-19 may restrict the ability of incorporated associations to hold an AGM whilst also complying with the COVID-19 restrictions.

The State and Territory regulators have each taken different positions to extending AGM deadlines or holding virtual AGMs.

Regardless of the position taken by State and Territory regulators, associations should still bear in mind:

  • The regulators' responses do not necessarily amend the relevant State and Territory legislation which will continue to apply, for example, in relation to the quorum of the AGM.
  • The regulators' response is only an indication of the approach which those regulators will take. Associations should be mindful that relief from regulators does not preclude action being taken by third parties in relation to an association delaying an AGM or holding a hybrid / virtual AGM.
  • Associations should consider whether their rules / constitution provide the flexibility to hold hybrid or virtual AGMs.
  • Virtual AGMs will necessitate the need for voting at AGMs to occur by a poll rather than a show of hands.

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https://www.minterellison.com/articles/covid-19-what-it-means-for-incorporated-associations-with-upcoming-agms