Australian Shareholders’ Association to scrutinise ASX boards on AI risks
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The news: The Australian Shareholders’ Association (ASA) has released its 2026/2027 focus issues outlining key expectations for ASX-listed company boards ahead of their annual general meetings, including the need to strengthen board oversight of AI and cybersecurity threats.
It is pushing boards to “demonstrate active and informed oversight of material technology-related risks, including artificial intelligence and cybersecurity” and to “avoid undue reliance on third-party providers”.
The context: The ASA is set to write to ASX chairs to outline this year’s focus issues and set clear expectations for disclosure to retail shareholders, while directly engaging with companies ahead of their AGMs to discuss these matters.
The four main focus issues outlined by the ASA include aligning executive pay with long-term shareholder value, disclosure of individual director skills, improving shareholder engagement, and strengthening board oversight of AI and cybersecurity risks.
ASA said it expects clear disclosure demonstrating strong board oversight and active management of material AI and cybersecurity risks, adding that where these factors are found inadequate, the ASA will take this into account when considering the election or re-election of directors with relevant oversight responsibilities.
What they said: “Shareholders are owners of the companies they invest in. They have a right to clear information, meaningful engagement and strong board oversight,” ASA CEO Rachel Waterhouse said.
“Good governance is not a tick a box exercise. It is central to shareholder trust, board accountability, better company performance and long-term value creation,” she added.
The source: Australian Shareholders Association press release
