Parliamentary shareholders report released

Nick Sherry

The Parliamentary Joint Committee on Corporations and Financial Services has released its report, ‘Better Shareholders, Better Company’, which examines shareholder engagement and participation in Australia.

The report has been welcomed by the Government and industry figures. The Minister for Superannuation and Corporate Law, Nick Sherry, said many of the issues raised in the report are currently under consideration by the Government.

“In particular, access to share registers which permit predatory share offers is under close examination. Several recent court decisions have addressed this important area and may be subject to appeal,” he said.

“The Government will be informed by these cases in taking action to limit unfair and predatory share offers.”

The Investment and Financial Services Association chief executive officer, Richard Gilbert, also welcomed the report and said the parliamentary committee had set out recommendations that would enhance Australia’s standards of corporate governance.

“Australia is well-regarded in the region for the strength of our regulatory regime and market integrity. We are therefore pleased with the committee’s support for improving the integrity of the proxy voting system.”

Gilbert said IFSA supported the recommendations to remove impediments currently preventing companies from engaging with shareholders.

“The Australian financial services industry is best served by a principles-based regulatory response that promotes the integrity, efficiency and competitiveness of the Australian capital market.”