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Making Shareholder and Director Virtual Meetings Secure
Despite COVID-19 pandemic disruptions, entities with shareholders must timely execute both director and shareholder meetings. The legal duty to conduct meetings has not been altered by prohibitions on gatherings. Holding director meetings and shareholder meetings via the Internet may attenuate meeting difficulties while mitigating health concerns, however, doing so raises the issue of cybersecurity.
Complying with federal securities laws, applicable state laws and traditional corporate governance practices normally results in in-person directors meetings and shareholders meetings. Such meetings have been discouraged by pandemic regulations. Suitable use of existing technologies, and amendments in entity procedures and governance documents, allow internet communications to be lawfully integrated into director meetings and shareholder meetings to overcome COVID-19 related difficulty including "social distancing" requirements and bans on large gatherings. The use of said internet communication means that cybersecurity has become an urgent concern for companies.
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