COVID-19 Pandemic Nearing End, But Convenience Here to Stay! New Laws Effecting the Daily Operation of Australian Businesses

It goes without saying that how we have operated our lives and businesses has changed many times over throughout the course of the COVID-19 pandemic. Restrictions are being wound back. We are moving forward. However, in news that will benefit all involved in business dealings, we confirm that some of the pandemic response changes are here to stay. These new laws centre on permanently allowing electronic and split execution of documents.

Our previous articles on this topic, which can be accessed via the links below, outline some of the changes that were originally made on a temporary basis:

Sign of the Times’ Electronic Execution of Documents Post COVID – 19

Witnessing Documents in this New World – Electronic Witnessing of Documents is Here to Stay

On 23 February 2022, the Corporations Amendment (Meetings and Documents) Bill 2021 (Bill) became law, bringing with it a greater sense of convenience whilst also facilitating efficiency. The core principle of the Bill allows companies to execute documents, including deeds, contracts and agreements, by electronic means.

The Bill effectively implements the temporary measures introduced in response to the COVID-19 outbreak, when many people worked remotely and without in-person contact, on a permanent basis. Alongside the freedom to electronically execute documents, many other changes have been made, all of which offer increased convenience and efficiency.

These changes, include but are not limited to, are summarised as follows:

1. Allow for documents that fall under the scope of sections 126 and 127 of the Corporations Act 2001 (Act) to be presented in electronic means, not a paper copy as was previously required by law.
2. Allow an authorised individual or agent, appointed under section 126 of the Act, to execute deeds, without the need of an accompanying deed to give authorisation.
3. Allow for an authorised person’s signature on a deed to occur without the need of a witness.
4. Allow for a document to be executed by split execution. This removes the requirement of a face to face exchange when signing a document.
5. Allow a proprietary company with a sole director and no company secretary to sign, regardless of the sole director’s status as director and/or secretary.
6. Allow an agent to execute a document without the need to be appointed by a deed.

As you can see, these changes will continue to allow us to operate in a more time-friendly and convenient way well after the COVID–19 Pandemic has ended.

Should you need further information or assistance as to how this affects you, please reach out to Gavin and the team at Gavin Parsons and Associates on (02) 9262 4471 or at gavin@gpalaw.com.au