Further update on the virtual general meeting: Federal Cabinet decides to make a virtual general meeting permanently possible

After a first draft bill was already presented at the beginning of 2022 to permanently enable the possibility of a virtual general meeting, a government bill on this topic has been available since 20 April 2022. We already reported on the draft bill here.

Now government draft with generous transition period

The government draft adopts the proposals made there, but allows for a generous transition period so that the mandatory amendments to the articles of association can still be implemented by the companies in 2023, even if the new regulation is already planned to come into force in 2022.  This is because, according to the government draft, for general meetings convened up to and including 31 August 2023, even with a simultaneous resolution on the amendment of the articles of association, the executive board may still decide, with the consent of the supervisory board, that the meeting be held as a virtual general meeting in accordance with the new section 118a of the German Stock Corporation Act.

Conclusion

It remains to be seen when and with which text the government bill will be passed in the Bundestag.