CSA calls for share register privacy

Chartered Secretaries Australia (CSA) yesterday unveiled a proposal to deny third parties access to company share registers except under strict controlled conditions.

The governance professionals’ body proposes to deny third-party share register access unless a shareholder has consented or the third party has lodged a bidder statement with ASIC regarding a takeover of a company.

A third measure denies access unless ASIC or the courts have directed that a third party be given access to the share register, and that person satisfies a “proper purpose” test similar to that applied in the UK.

CSA chief executive Tim Sheehy called for “both sides of politics to show explicit support for the measures to prevent third parties from raiding personal shareholder details through the share register”.

“Whichever party gains office must be prepared to give shareholders privacy rights that are at least equal to what other investors such as bank customers and super fund members currently enjoy.”

Sheehy said it was “of concern” to the CSA that “anyone can currently obtain a copy of a company’s share register simply by paying a nominal fee”.

“This allows unauthorised persons to access highly personal shareholder information with very few restrictions, including their names, addresses and holding sizes.”

It also provides “a tantalising opportunity for unscrupulous profiteers to prey on vulnerable shareholders by approaching them to acquire their shares at well below market value”, he added.

“It is retail shareholders; ordinary ‘mum and dad’ investors who are at greatest risk here and therefore in greatest need of protection.”