The Federal Government is seeking feedback on draft legislation aimed at modernising business communications.

The draft bill allows the use of technology to hold meetings, execute company documents and send meeting-related materials in order to satisfy Corporations Act requirements.

The reforms make permanent temporary measures put in place during the COVID pandemic relating to electronic execution of company documents and meeting notifications, which received overwhelming stakeholder support.

Responses to the consultation can be submitted until July 16.

The draft makes clear that companies can hold hybrid meetings and members must be given a reasonable opportunity to participate whether the meeting is physical, hybrid or virtual.

It also stipulates that using a show of hands is the default method for voting at both physical and hybrid meetings, and allows members who hold at least 5% of voting capital to have polls independently scrutinised.

“These changes will provide shareholders with enhanced opportunities to both participate in and scrutinise company meetings,” a statement from Treasurer Josh Frydenberg’s office said.

The legislation also allows sole directors who are not also appointed as the company secretary to electronically execute documents.

Provide feedback on the draft here.