Have you considered how you will legally hold your AGM with the COVID-19 imposed social distancing?
As the Government introduce social distancing measures including advice to stay at home, how will you hold your AGM?
Even if your AGM is not imminent it is vital to take steps now to mitigate any issues you may have in legally constituting your AGM. After all, it’s costly to reissue documentation to shareholders and it can delay important business decisions.
- Check the AGM quorum in your articles of association. This is usually two but could be more. [A quorum is the minimum number of, in this case, shareholders who must attend the meeting].
- If you have not yet advised shareholders of the date of the meeting can you postpone this? How long can you legally postpone for?
- Check if you have the flexibility to hold your AGM by electronic means.
- Consider obtaining corporate representative letters for any individuals who hold their shares through a nominee e.g. an ISA.
- Discuss with your registrar their approach to COVID-19 as they usually attend as independent scrutineer or a poll.
- As venues are told to close have you considered how you would inform your shareholders if at the time you are legally unable to hold your meeting? Do you know what you legally need to do if you cannot hold the meeting?