Private companies get court go-ahead for virtual AGMs
Tuesday, June 23, 2020 0:01
By PATRICK ALUSHULA
Bernard Kiragu, managing partner at Scribes Services.
FILE PHOTO | NMG
The High Court has cleared private companies to hold virtual annual general meetings (AGMs), putting them at par with listed firms that were allowed to hold remote meetings following the ban on mass gatherings in the wake of Covid-19.
The court had in April cleared listed firms to hold virtual AGMs despite their internal rules only allowing for physical meetings, leaving out private companies.
Several listed firms who have held AGMs have so far changed their articles of association to allow for virtual meetings, meaning that they may not require special clearance in future.
High Court has, however, reminded private firms holding the meetings to abide by provisions in the Companies Act as well as the guidelines that were issued by the registrar of companies in holding hybrid or virtual meetings.
