Acra, MOF and MAS seek public feedback on legislation to hold virtual meetings

THE Singapore authorities launched a public consultation on Thursday (Feb 9) seeking feedback on proposed legislative amendments that will enable the conduct of general meetings by electronic means.

The Accounting and Corporate Regulatory Authority (Acra), the Ministry of Finance (MOF), and the Monetary Authority of Singapore (MAS) said in a joint statement that they have proposed amendments to the Companies Act, Variable Capital Companies Act and the Business Trusts Act, allowing the option to conduct fully virtual or hybrid general meetings.

The consultation comes ahead of the revocation of temporary orders that allow for virtual meetings.

In April 2020, the Covid-19 (Temporary Measures) (Alternative Arrangements for Meetings) Orders were introduced, allowing entities to hold virtual meetings temporarily, even if this was prohibited under any written law or legal instrument.

The orders were due to expire by September 2020, but were extended by the Ministry of Law in view of the continuing Covid-19 situation. On Dec 15, 2022, MinLaw said the orders would cease on Jul 1, 2023.

However, Acra and MAS had also said they were working on legislative amendments. Singapore Exchange Regulation (SGX RegCo) also said previously in December it would work closely with MAS to provide guidance for listed issuers to have the option to conduct hybrid meetings.

The authorities noted on Thursday that the Companies Act provides for general meetings, but does not directly address the manner in which general meetings are held. The provisions had originated before the advent of digital technology, and some provisions lean more towards a general meeting in a physical venue.

“The proposed amendments will expressly clarify that companies can hold fully virtual or hybrid general meetings and provide companies flexibility in holding such meetings, while ensuring that members’ rights are upheld,” the statement said.

The authorities added that facilitating the use of digital media and technology would help companies comply more effectively with the law in today’s operating environment.

SEE ALSO

Permanent rules for Singapore listcos to continue virtual meetings a given, say pundits

The public consultation exercise will run until Feb 20, 2023, and interested parties can submit their comments to the authorities via email.