Submission on AGM and Shareholder Engagement

  • Date:21 Dec 2012
  • Type:Policy Submission

On 21 December 2012, the Australian Institute of Company Directors provided a submission to the Corporations and Markets Advisory Committee (CAMAC) in response to its consultation paper The AGM and Shareholder Engagement.

Our submission stated that despite falling attendance by shareholders in recent years and commentary expressing concerns about the relevance of the AGM, directors are of the view that the AGM remains an important forum.

While our submission suggested improvements to the AGM in some areas, we are of the view that, to date, no superior alternative to the AGM has been put forward.

We also noted that we had received strong feedback from directors that the focus on remuneration at AGMs has been detrimental to the effectiveness of the meeting as a forum for discussion on a wide range of corporate activities. The Australian Institute of Company Directors is of the view that legislative amendments in relation to remuneration have shifted the focus of shareholder engagement, the AGM and corporate reporting away from a range of significant issues, including corporate performance and strategy, toward a discussion that is focussed predominately on salary.

On the issues of shareholder engagement and corporate reporting we recommended that companies and boards not be subject to further regulation in these areas. In the interests of good corporate governance, however, and to recognise the influence that institutional shareholders and proxy advisers have on voting outcomes at AGMs, we recommended that in some instances additional principles and guidance should apply to these participants.

Download our submission on AGMs and Shareholder Engagement (PDF 566 KB).