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Corona makes shareholders' meetings go virtual

In spring, many companies, including investment companies, are planning their ordinary shareholders' meeting. The safety measures taken in order to avoid a spreading of the COVID-19 pandemic, especially restrictions on gatherings of people, partly have significant effects on the ability of companies of various legal forms to act. Companies are now often no longer able to make decisions at relevant meetings in the usual way. On the one hand, this applies to ordinary meetings, which usually take place annually and are often used to approve the annual financial statements and to determine the distribution of profits, and, on the other hand, to extraordinary meetings that are necessary due to special measures, in particular for corporate actions and restructuring. Companies that, according to their constituting documents, do not have the possibility to hold their shareholders' meetings by written proceedings, audio conference or video conference, must now face the problem of holding the upcoming shareholders' meetings despite social distancing or lockdowns.

Note: This newsletter is only available in German language.