obligations mentioned above. COVID-19 is having a vintage easily distracted by cats and vinyl poster material impact on a number of entities and proving to be a fast-evolving challenge to business continuity.
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in November 2020, ASIC’s position will be still be a source of comfort. It is also encouraging to see the regulator acknowledging the difficulties being faced by Australian companies at this time, vintage easily distracted by cats and vinyl poster and that it intends to be facilitative in working with them through this period and to continue to update its position as the circumstances change. The Treasurer’s modification goes further in applying to all entities and directly addressing the underlying legal position as to what the law and a company’s constitution permits regarding the use of technology. Special rules apply for companies that have already called a meeting and are now seeking to hold their meeting virtually. Please contact us if this impacts you.
The analysis can be more complex when considering potential or anticipated events of default or covenant breaches . These scenarios are usually fact specific, and require careful consideration, advice and monitoring. if the directors ‘declared’ the dividend then, an irrevocable debt is created at that time. Boards will need to ensure they are receiving the necessary information to make informed decisions in a timely manner, while ensuring that they do not constrict management’s crisis management abilities. This may involve the chairperson, or a member of the risk committee, and CEO working together to disseminate information between management and the board, and the board providing the necessary support to management at this challenging time. In the context of COVID-19, this may involve reinforcing trading policies; considering closed and black-out periods for trading; controlling dissemination of information internally; and ensuring relevant information is publicly announced at the appropriate time, in accordance with the listed entity’s disclosure
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