Activism encouraged
Australian institutional investors have been encouraged to remain shareholder activists in the interests of ensuring appropriate corporate governance within major companies both domestically and overseas.
The executive director of the International Corporate Governance Network, Anne Simpson, pointed to the success institutional investors, including Australian superannuation funds, have had dealing with the News Corporation transfer to US Delaware jurisdiction.
Addressing the Conference of Major Superannuation Funds, Simpson said it was important for Australian institutional investors such as superannuation funds to be aware of what was happening in jurisdictions such as the US, and the possible knock-on effects with respect to their investment objectives.
She said the US had experienced a spectacular series of corporate scandals that had given rise to new legislation aimed at overcoming such situations, but shareholders were still battling for basic rights in the face of “Soviet-style” director elections.
“Our view is that an opportunity was missed after the US (corporate) collapses,” Simpson said. “Too often, the options (confronting investors) are ‘sell or sue’. In those circumstances, you need to know the governance risks before going over there.”
AUTHOR
Mike Taylor
Recommended for you
In this episode of Relative Return Unplugged, hosts Maja Garaca Djurdjevic and Keith Ford discuss the corporate regulator’s recent discussion paper looking into the rapid growth of private markets and the role of superannuation funds in this “opaque” sector.
On this episode of Relative Return Unplugged, host Maja Garaca Djurdjevic is joined by AMP’s chief economist Shane Oliver to break down the Reserve Bank of Australia’s long anticipated rate cut to 4.1 per cent.
In this episode of Relative Return Unplugged, hosts Maja Garaca Djurdjevic and Keith Ford, along with special guest Liam Garman, break down the economic landscape ahead of the Reserve Bank’s highly anticipated first rate call of 2025.
In this episode of Relative Return, host Laura Dew chats with David Russell, chair of the Transition Pathway Initiative, and Tony Campos, head of sustainable investment at FTSE Russell, about the intricacies of climate investment.
