Jane Hume (Victoria, Liberal Party, Minister for Superannuation, Financial Services and the Digital Economy) Share this | Hansard source

Firstly, I'd like to thank those senators who have contributed to this debate. I'd also like to thank the Senate Economic Legislation Committee for their inquiry into and report on this bill. The Corporations Amendment (Meetings and Documents) Bill 2021 modernises the Corporations Act 2001 and the Corporations Regulations 2001 to allow for the use of technology to meet regulatory requirements.

Specifically, companies and registered schemes will be able to hold meetings physically, as a hybrid, or, if permitted by the entity's constitution, a wholly virtual meeting. Members will have the flexibility and the choice to receive documents electronically or in hard copy. Finally, the bill allows for documents to be validly executed in flexible and technology-neutral ways, including electronic or wet ink signatures.

The government will conduct a 12-month opt-in review of annual general meetings, or AGMs. The aim of the review will be to encourage companies and shareholders to engage with technology with a view to considering whether future permanent reforms are needed to further support companies to effectively use technology to engage with their members. A review of the legislation will also be conducted and tabled in parliament by the first sitting day of each house, following the 30-month period after the day the bill commences. The review will be undertaken by an expert panel, consisting of members with experience in corporate governance and the role of company directors representing the interests of shareholder rights, and experience in advocating for corporate social responsibility. These reforms will support companies and registered schemes to effectively use technology to engage with their members and provide regulatory settings to support Australia's economic recovery plan. In its report, tabled on 18 November 2021, the Senate Economics Legislation Committee recommended that the bill be passed.

I would like to address here the two other recommendations that are made in that report. The Labor senators recommended an independent review of the bill, conducted within two years of its implementation date. The bill includes a requirement to review and report on the operation of these amendments at the earliest practical time, two years after the commencement of the provisions. The Australian Greens senators recommended that the provision allowing for entities to conduct wholly virtual AGMs be opposed. The bill gives entities and members the flexibility to hold meetings in the format that best suits them. The bill allows entities to continue to hold physical meetings and makes permanent the ability to hold hybrid meetings. An entity may only hold a wholly virtual meeting if it is expressly permitted by the entity's constitution, and this gives members the right to consciously decide whether wholly virtual meetings should be permitted.

We made further amendments to the bill to ensure that, if a review is not conducted and tabled in parliament, provisions of the bill that allow for wholly virtual meetings will cease to have effect. Additionally, if there are any recommendations from the review, a written government response will be required and tabled in parliament no later than three months after the report is tabled. The bill also preserves members' rights to participate in meetings by requiring that virtual-meeting technology be reasonable and facilitate the ability of the members to ask questions and make comments both orally and in writing. For these reasons, and on and on the recommendation of the Senate Economics Legislation Committee, I commend this bill to the Senate.

Question agreed to.

Bill read a second time.