The Minister for Financial Services & Regulation, Joe Hockey, has asked a high-level Government committee to look at ways of encouraging retail investors to become more active in the companies in which they invest.
The Australian Securities and Investments Commission's Roundtable on Corporate Governance will look at how to encourage more small shareholders to raise issues at annual meetings and exercise their voting rights.
The Roundtable on Corporate Governance includes representatives of securities industry associations, shareholder groups, the Australian Stock Exchange and the Federal Department of Treasury.
"Over 5.7 million Australians own shares directly in companies. These investors have a voice and should use it to raise issues, to make sure the company is well run and to hold the directors accountable," the Minister said.
"But, not all mum and dad investors find it easy to have their say. We want to investigate how to make it easier for these small shareholders to get involved and cast their votes at annual meetings."
ASIC and the ASX have been working with industry on a number of initiatives to help investors get involved including disclosure of ASX filings on websites, electronic voting and webcasting of Annual General Meetings. Another issue being considered is improving the quality and readability of voting information to ordinary shareholders.
The Minister also welcomed a study released today that showed a majority of large investors are casting their voting rights at company meetings. The survey was conducted by the Investment and Financial Services Association (IFSA).
"I am pleased that big investors have heeded calls to be more involved in the companies in which they invest.
"Institutional investors, including super funds, represent large numbers of Australian employees and investors who are entitled to have their voice heard.
"This Government recognises that if shareholders large and small - exercise their rights to vote it will generally lead to far improved corporate governance, which in turn will produce better returns over the long term."