29 September 2020

Charities and coronavirus: extension of some measures brought in by the Corporate Insolvency and Governance Act

Chris Priestley
Partner | UK

In a welcome move, the Government has announced that some of the measures brought in by the Corporate Insolvency and Governance Act will be extended. The Act contains measures to relieve some of the pressures faced by organisations as they operate during the coronavirus pandemic, which were previously due to expire on 30 September.

The Act relaxes the rules on holding members’ meeting for ‘relevant bodies’, which includes charitable companies and charitable incorporated organisations. Those with obligations to hold AGMs will have the ability to hold them virtually until 30 December 2020, even if the governing document does not provide for it as the provisions of the Act include that:

  • The meeting need not be held at any particular place.
  • The meeting may be held, and any votes may be permitted to be cast, by electronic or any other means.
  • The meeting may be held without any number of those participating in the meeting being together in the same place.
  • A member of the qualifying body does not have a right a) to attend the meeting in person, b) to participate in the meeting other than by voting, or c) to vote by particular means.

The restriction on statutory demands and winding up petitions will now continue until 31 December 2020.

However, the provision allowing AGMs to be postponed until 30 September has not been extended. The Charity Commission has recommended that charities consult its advice on postponing or cancelling meetings, available here.

Chris Priestley Partner | London

Category: Article