An Analysis of Shareholder Resolutions Involving Australian Listed Companies from 2004 to 2013

Company and Securities Law Journal, Vol. 34, No.8, pp. 618-624, 2016

7 Pages Posted: 21 Nov 2016

See all articles by Hui Chia

Hui Chia

University of Melbourne - Centre for Corporate Law and Securities Regulation

Ian Ramsay

Melbourne Law School - University of Melbourne

Date Written: November 20, 2016

Abstract

The authors analyse resolutions proposed by shareholders of Australian companies listed on the Australian Securities Exchange for the 10 year period from 2004 to 2013. They investigate the number of shareholder resolutions over time, the subject matter of the resolutions, whether the resolutions were supported by management, the number of resolutions at extraordinary and annual general meetings, and some of the characteristics of companies that were the subject of many of the resolutions.

Key findings include:

(a) an increase in resolutions during the global financial crisis;

(b) management recommended against 81 per cent of the shareholder resolutions;

(c) 92 per cent of the resolutions concerned the election or removal of directors;

(d) 71 per cent of the resolutions were proposed for consideration at extraordinay general meetings and not annual general meetings; and

(e) a very small number of companies (23) were responsible for 37 per cent of all shareholder resolutions and these companies tended to be small capitalisation companies and the majority of the resolutions involving these companies occurred in 2008–2009.

Keywords: shareholder resolutions; governance

Suggested Citation

Chia, Hui and Ramsay, Ian, An Analysis of Shareholder Resolutions Involving Australian Listed Companies from 2004 to 2013 (November 20, 2016). Company and Securities Law Journal, Vol. 34, No.8, pp. 618-624, 2016, Available at SSRN: https://ssrn.com/abstract=2873296

Hui Chia

University of Melbourne - Centre for Corporate Law and Securities Regulation ( email )

Victoria 3010
Australia

Ian Ramsay (Contact Author)

Melbourne Law School - University of Melbourne ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia
+61 3 8344 5332 (Phone)

HOME PAGE: http://law.unimelb.edu.au/about/staff/ian-ramsay

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