The Australian Council of Superannuation Investors (ACSI) is calling for the introduction of an ordinary non-binding shareholder resolution framework in Australia.
In a new report, ACSI CEO Louise Davidson observes that currently, shareholders who wish to raise an issue must propose a constitutional amendment or vote against the re-election of directors.
‘This makes it difficult for shareholders to hold public companies to account on some important environmental, social and governance (ESG) issues,’ she says.
‘In other jurisdictions where non-binding shareholder resolutions are permitted, we have seen shareholders use them to improve company disclosure on risks associated with sustainability, climate change and labour and human rights.’
Davidson says recent events highlight the importance and urgency of this issue.