AICD submission to ASX consultation on shareholder approval

The AICD supports ASX undertaking its review. It is in the interests of all market participants for the Listing Rules to be broadly supported, and for listed entities, directors and investors to have certainty around their operation.

The AICD’s overarching position is that any changes to the current settings must be proportionate and only made in response to a demonstrated systemic issue.

Any proposed changes must also be assessed in the broader context of ongoing initiatives to simplify and modernise regulatory settings and listing frameworks, which aim to enhance the attractiveness of Australian markets, support growth and innovation and reduce the regulatory burden for listed entities.

We recognise that the ASX Listing Rules play an essential role in safeguarding market integrity, supporting investor confidence and ensuring market efficiency, and that any changes to existing settings must strike the right balance for all market participants.

It is also critical that potential changes are considered holistically, to ensure that the cumulative burden of regulation – which can act as a major barrier to business growth and new investment, reduce competitiveness, and discourage participation in public markets – is not exacerbated for listed entities.

While we have concerns about the proposal to reduce the limit on issues of shares without approval under exceptions 6 and 7 in Listing Rule 7.2, we are broadly supportive of ASX’s preliminary positions in relation to changes in admission status.