This is an update to our previous insight article Corporate electronic execution temporarily permitted which discussed the introduction of the Corporations (Coronavirus Economic Response) Determination (No. 1) 2020 (Determination) on 6 May 2020. The Determination permits the execution of documents by companies electronically under section 127 of the Corporations Act 2001 (Cth) (Act).
On 31 July 2020, the Treasurer announced that due to the positive feedback received, the temporary modifications made by the Federal Government to the Act pursuant to the Determination in relation to the execution of documents have been extended for a further period of 6 months. The Determination which was due to expire on 6 November 2020, will now continue in full effect until 21 March 2021.
This means that company officers will continue to be able to sign documents electronically and, for the duration of the extended relief, signatories will not be required to sign the same physical document. This will ensure that documents can continue to be properly executed at a time when ordinary business operations have been disrupted and social distancing measures remain in place.