Arrangements and management of AGMs is usually carefully monitored by government regulators, but the Australian Securities and Investments Commission (ASIC) says it is being “flexibly pragmatic” in light of the coronavirus crisis.

ASIC Commissioner John Price issued special guidelines addressing upcoming AGM and financial reporting regulatory requirements earlier this month.

In particular, ASIC acknowledges that restrictions on large gatherings and travel and concern from members about attending large-group meetings in the COVID-19 situation.

Mr Price says a “flexible pragmatism” is needed, and as the regulator does not have the power to grant AGM extensions to all entities with a financial year ended December 31, it has got around this by taking a “no-action” position.

This will assist, Melbourne-based PSC Insurance Group, which has told its shareholders that attendance to its General Meeting tomorrow is to be offered electronically.

PSC has urged shareholders to vote online and to submit any questions by email prior to the meeting. It will now be held as a “hybrid meeting” which will still be held at the physical location but also electronically via a Webex dial-in.

“There is some doubt as to whether the Corporations Act permits virtual AGMs and there may also be doubt as to the validity of resolutions passed at a virtual AGM,” ASIC says in a statement.

“ASIC does not have the power to modify the Corporations Act to facilitate virtual AGMs. However, we have provided a ‘no-action’ position on virtual AGMs.”