OPINION: Proxy advisers exist to demand accountability. But their operations are the most opaque part of the governance system.
More than most, Australia is a nation of investors.
While it is easy to dismiss the significance of shareholder votes to an annual exercise at the AGM, my experience and that of many other public company directors with whom I’ve discussed this issue, is that shareholder votes are a critical part of the governance framework within which public companies operate, the influence and impact of which should not be under-estimated.
Unlike businesses that are required by law to provide timely and accurate information to the market, the four major proxy advisers in Australia are exempt from rules to ensure accountability. As we’ve seen throughout the pandemic, it has been the leadership and robust balance sheets of responsible, well-run companies, along with the government’s actions, that have kept the economy strong. It’s in Australia’s national interest that our businesses are strong and well-run.