Digital or face-to-face board meeting? That is up to you
A new law is in place that allows your company to choose whether you want to hold board meetings and general meetings digitally, or have physical meetings.
During the corona pandemic, there has been a temporary law that gave companies the opportunity to choose to hold meetings electronically. The temporary law was repealed on June 1, 2021. On the same day, a new, permanent law came into force, which means that you can now have board meetings digitally if it suits your company best.
Physical and digital meetings are equal in law
The new law equates physical and electronic meetings. Your company can choose whether you want to hold board meetings, general meetings, annual meetings and company meetings digitally or physically.
The rules include limited companies, public limited companies, responsible companies, cooperatives, foundations, state-owned enterprises and financial undertakings.
Who decides whether the meeting or the general meeting is to be held electronically or physically?
In limited companies, it is the board that decides whether meetings are to be held as a physical meeting, or electronically.
The board shall ensure that digital systems are in place that ensures that the legal requirements for the general meeting are met. These systems must ensure that participation and voting are controlled in a reassuring manner, and a secure method must be used to authenticate senders.
Read the whole law in Norwegian at Lovdata (link to external site).
Why is the law changed?
In line with the digital development in society, there are now good solutions for meeting via digital channels. Therefore, there was a need to update the legal text.
In addition, it is seen that participation in general meetings and similar meetings increases when you have the opportunity to participate digitally. This reduces travel costs and expenses for meeting rooms, and it also makes it easier for people with disabilities to participate.
The board has a special responsibility if the company experiences difficult times
If you sit on a board of a Norwegian company, you must be aware of the duties of the board when the company experiences challenges. During the corona pandemic, it has been more important than ever to be aware of the responsibility you have as a board chairman and board member.
Contact us in Accountor if you need help with ensuring that the board in your company does their work according to the legal responsibilities.