The ASX has lost the plot on shareholder rights
As the ASX drags its feet on long-promised reforms, shareholder rights are being eroded. Australia’s public markets are paying the price.
The ASX stands at a crossroads, paralysed as the foundations of Australia’s public equity markets crumble beneath it. Once again, it finds itself caught like a deer in headlights, grappling with the consequences of poor decision-making and plodding execution — this time through its failure to keep listing rules aligned with contemporary realities.
In the latest debacle, highlighted by the James Hardie–AZEK merger, institutional investors sounded alarms about a significant volume of takeover scrip being issued without shareholder approval. The ASX promised action, announcing in April that it would review shareholder approval requirements.
Yet, responding more like a public service bureaucracy than a commercial operator, six months later it has delivered nothing. In the meantime, the announced Southern Cross Austereo merger with Seven West Media exploited the very loophole the ASX had pledged to address, infuriating shareholders who were denied their right to vote.
This is more than administrative ineffectiveness — it signals a systemic problem.
In announcing its review, the ASX revealed the heart of the issue when it declared that "listing rules need to balance the interests of both listed entities and investors". Investors are the actual owners of these entities. The interests of issuers should not be weighed against those of investors but aligned with them.
