Government urged to amend law to allow virtual AGMs during pandemic
Calls have been made for the Government to temporarily amend company legislation so that virtual annual general meetings (AGMs) can be held, as companies try to cope with the coronavirus pandemic, The Irish Times reports.
By law, all companies must hold AGMs and the maximum time allowed between meetings is 15 months. Pandemic restrictions, however, have made this impossible for many organisations.
Some companies have held virtual AGMs while others have simply postponed them.
The Institute of Directors (IoD) said that companies must not continue to postpone meeting indefinitely as many need to be able to hold AGMs to ensure annual accounts are approved.
It has suggested steps be taken to promote the holding of virtual meetings.
“Business leaders want to continue to run their businesses [while] meeting their legal and fiduciary duties, but the current crisis has created a particular issue around the physical holding of AGMs for many and for those who cannot under their own constitution have a virtual AGM,” said chief executive Maura Quinn.