The 2017 annual general meeting (AGM) season was significantly less tumultuous than the 2016 season, with a stronger shareholder engagement, according to the Australian Securities and Investments commission (ASIC).
The ASIC’s “Annual general meeting season 2017” report, which examined the voting outcomes of resolutions considered at the AGMs held by ASX 200 companies, highlighted the need for boards to make the most of AGM’s as an opportunity to be “transparent, accountable and willing to engage with shareholders”.
The 2017 season also saw a stronger sense of shareholder input and engagement, with directors of boards being held accountable through material against votes on their election and fewer ‘strikes’ on remuneration reports, the report found.
Additionally, shareholders advocated for action on specific environmental, social and governance issues, with a particular spotlight on board diversity.
Also, according to ASIC, proxy advisers continued to actively scrutinise governance practices and attract or generate significant media and corporate commentary.
ASIC’s commissioner, John Price said: “Shareholder engagement is a cornerstone of good corporate governance and annual general meetings area an important opportunity for shareholders to hold their board and, through the board, company management to account for a company’s performance.”
“Therefore, ASIC actively monitors the AGM season each year and our observations become an important and on-going resource informing our regulatory work in corporate governance.”
