House of Representatives

Second Reading Speech

Mr Sukkar (Assistant Treasurer, Minister for Housing and Minister for Homelessness, Social and Community Housing)

I move:

That this bill be now read a second time.

The Corporations Amendment (Meetings and Documents) Bill 2021 makes permanent the ability for companies, registered schemes and their officers to use digital technologies to meet Corporations Act 2001 and Corporations Regulations 2001 requirements in respect of meetings, sending meeting related materials and executing company documents.

These reforms follow the temporary relief initially provided on 5 May 2020 through the Treasurer's instrument-making power, and then renewed through the passing of the Treasury Laws Amendment (2021 Measures No. 1) Act 2021 as part of the Morrison government's response to the coronavirus crisis. As this relief is to expire on 31 March 2022, permanent reforms are necessary so that companies know their obligations and can get on with business.

The reforms contain enhancements to the temporary relief measures, and reflect feedback received during consultation. These enhancements ensure that companies are required to meet the same substantive regulatory standards regardless of how a meeting is held. Specifically, it requires companies to give shareholders a reasonable opportunity to participate, including the ability to speak or ask questions orally and in writing. It also provides shareholders that own at least five per cent of voting power to request an independent report or observation of a poll taken at the meeting.

It also provides companies and registered schemes with the flexibility to notify and provide documents in hard or electronic copy, and ensures that members have the opportunity to elect to receive documents in their preferred form.

The reforms allow documents to be signed and executed in flexible and technology-neutral ways to ensure that, regardless of whether company officers execute documents electronically or physically, the execution will be valid. The reforms extend the ability of company agents to make contracts and execute documents-including deeds-flexibly.

The government will continue to ensure that regulatory settings are fit for purpose as we deal with, and emerge from, the coronavirus crisis, as part of Australia's Economic Recovery Plan to create jobs, rebuild our economy and secure Australia's future.

Finally, the Legislative and Governance Forum on Corporations was consulted in relation to the bill and has approved them as required under the Corporations Agreement 2002.

Full details of the measures are contained in the explanatory memorandum.

Debate adjourned.