A regulation will enable companies, associations or foundations to hold virtual meetings until the end of 2021.
On October 14, 2020, the Federal Cabinet approved a draft bill by the Federal Ministry of Justice and Consumer Protection, which extends the relevant regulations in company, cooperative, association and foundation law.
This means that the legal regulations that came into force on March 28, 2020, with which the ability to act and quorum of stock corporations and many other legal forms during the pandemic, will continue to apply. According to the law on measures in company, cooperative, association, foundation and residential property law to combat the effects of the COVID-19 pandemic of March 27, 2020 (Federal Law Gazette I 2020, p. 569), stock corporations, GmbHs, cooperatives, Associations and apartment owners’ associations can take the necessary resolutions up to December 31, 2020 outside of face-to-face meetings, despite the existing restrictions on the meeting possibilities, and thus remain able to act. Virtual general meetings of stock corporations became possible for the first time.
It is not foreseeable when companies, associations or foundations will be able to hold large-scale meetings again. So that there is still the possibility of making resolutions even if the restrictions caused by the COVID-19 pandemic persist and thus ensuring the ability to act, the temporary relief was extended by ordinance until December 31, 2021.
More information can be found here.
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