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ASA updates voting guidelines

ASA has recently updated its voting guidelines for ASX 200 companies. Our voting guidelines are the basis of our company monitoring and advocacy work and reflect our members' expectations of investment performance, director behaviour and corporate governance.

The key changes to the voting guidelines are:

  • Policies renamed to “Voting Guidelines” to better reflect the nature of ASA’s stated policy position – they are not strict rules, but judgement is applied when analysing specific companies

  • Requiring companies seeking shareholder approval of an incentive award grant to a Managing Director to seek that approval on an annual basis, rather than over three years

  • Encouraging companies to adopt minimum shareholding guidelines for key executives

  • Preferring companies to purchase shares on-market to satisfy incentive scheme grants.

Click below to access the ASA voting guidelines for ASX 200 companies.

 

Comments

I have briefly reviewed these new ASA voting guidelines and feel they are a move in a positive direction.
They are more likely to be seen in a positive light by Company Boards as the ASA wish to engage in a dialogue and not to "put to the sword" or in other words we are able to advance by "use of the honey pot as opposed to the pepper pot".