New draft guidelines issued by the Governance Institute of Australia and Sandy Easterbrook aim to enhance long-term performance and corporate value by assisting ASX-listed companies and their institutional investors to engage more effectively.  We will continue to monitor the progress of the draft guidelines but both ASX-listed entities and institutional investors should start to familiarise themselves with them and consider whether they may wish to make any changes to their practices to meet best practice standards.

New draft guidelines:  Improving engagement between ASX-listed entities and their institutional investors(Guidelines) released by the Governance Institute of Australia (Institute) and Sandy Easterbrook follow consultation with chairpersons and directors of leading ASX-listed companies and senior executives in the institutional investor sector and are designed to ensure effective engagement between these parties.

The Guidelines are comprised of 17 guidelines divided into the following areas:

  1. Disclosure;
  2. Proxy voting and proxy advisers;
  3. Use of technology;
  4. Know the significant parties;
  5. Have regular and meaningful engagement;
  6. ESG (environmental, social and governance) issues; and
  7. Smaller companies.

The Guidelines should be read in conjunction with Improving engagement between ASX-listed entities and their institutional investors:  Background Paper which provides an overview of, and further information in relation to, each of the guidelines.

Submissions on the Guidelines were due by 24 April 2014.

See also the Institute’s media release