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Law360 (April 17, 2020, 10:24 PM EDT) -- The New York State Department of Financial Services will allow banks and credit unions to continue conducting shareholder and account holder meetings virtually 60 days after the state's coronavirus emergency is over.
The DFS said firms may continue to conduct the meetings virtually within that time frame "provided that all individuals can hear each other at the same time."
"A majority of regulated entities have transitioned to teleworking and virtual meetings during this pandemic to flatten the curve," DFS Superintendent Linda A. Lacewell said in a statement. "[The order] is part of a continued effort to provide relief to our regulated institutions so they can continue their operations with minimal disruption."
In addition, if firms' annual stockholder meeting deadlines elapse during the disaster emergency, the deadlines will be extended from the usual four months after the institution's fiscal year ends to seven months.
New York Gov. Andrew Cuomo issued an executive order March 7 declaring the disaster emergency for the entire state through Sept. 7.
However, it is possible that firms will be allowed to return to offices before the latter date as government officials begin floating plans to ease some of the current coronavirus-related restrictions. President Donald Trump said Wednesday that governors will be in charge of making the calls as to when to open their respective states back up.
The DFS and Cuomo's office did not respond to requests for comment, but the DFS did note in its order that Lacewell reserves the authority to modify, suspend or terminate the meeting relief measures.
"DFS will continue to consider regulatory relief, as appropriate and needed, for regulated institutions impacted by COVID-19," the DFS added. "The department encourages regulated institutions to communicate and pose questions to their designated or regular DFS points of contact."
--Editing by Breda Lund.
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