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

29 September 2020 | Applicable law: England and Wales

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.

This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.


Related experience

As a full-service law firm, we are able to provide advice and information about a wide range of other issues. Here are some related areas.

Join the club

We have lots more news and information that you'll find informative and useful. Let us know what you're interested in and we'll keep you up to date on the issues that matter to you.