Australian Shareholders' Association (ASA) is an Australian not-for-profit organisation which advocates for the rights of retail shareholders. Founded in 1960 in Sydney, ASA provides educational resources and professional learning opportunities for its members, who are largely independent small-scale investors.
ASA's most prominent public role, however, is in the research and publication of recommendations that members can use to inform their votes on such matters as executive pay and director re-elections. This role brought ASA under the scrutiny of an inquiry into the role of proxy advisors launched by Australian TreasurerJosh Frydenberg in May 2021.[1] ASA does not believe itself to be a proxy advisor, given its not-for-profit status, as well as the fact that its research is published as 'intentions' rather than recommendations.
Most recently, ASA has been one of the primary advocates against a Federal Government proposal to loosen disclosure requirements for directors of public companies, on the basis of their belief that the proposal "threatens the rights of investors".[2]
ASA's funding comes from membership fees, as well as donations and sponsorships. Sponsors for its 2020 conference included controversial mining company BHP and investment fund provider Fidelity International.[3]
Industry groups and committees
The ASA represents shareholder and member interests on the following industry groups and committees:[4]
AASB Disclosure Initiative Project Advisory Panel
ASIC Consumer Advisory Panel (CAP)
ASIC Regional Liaison Committee
ASX Corporate Governance Council
ASX CHESS Replacement project
ATO Individual Stewardship Group
Business Reporting Leaders Forum (BRLF)
Corporate Reporting Users Forum
Security Registrars Association of Australia
Achievements
ASA claims the following achievements, among others:[5]
advocating for regulatory reform, including the introduction of the 'two strikes rule', which requires non-managing directors of public companies to be immediately re-elected if two consecutive AGMs vote down their remuneration package[6]
being the dominant voice at AGMs as the voice of retail shareholders[7]
encouraging directors of public companies to reduce their board workload to reasonable levels, allowing them to focus on the boards on which they remain[8]
Membership
As of the end of 2020, ASA had 5,001 members, up slightly from the end of 2019.[9][10]
Leadership
ASA is led by CEO Rachel Waterhouse, and is overseen by a board of directors.
Australian Securities Exchange Ltd (ASX) is an Australian public company that operates Australia's primary securities exchange, the Australian Securities Exchange. The ASX was formed on 1 April 1987, through incorporation under legislation of the Australian Parliament as an amalgamation of the six state securities exchanges, and merged with the Sydney Futures Exchange in 2006.
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Glass, Lewis & Co. is a major American proxy advisory services company. As of spring 2019, Glass Lewis controlled 28% of the proxy advisory market for mutual funds; this makes it the second-largest company in the market behind Institutional Shareholder Services. The primary services provided by Glass Lewis are research and recommendations for shareholder votes by institutional investors, including a digital platform for managing these votes and reporting. A large fraction of those investors follow the recommendations of Glass Lewis in lockstep, giving it outsize importance and impact on governance across the corporate sphere.
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