Transforming proxy voting in Australia: factsheet

Proxy voting in Australia has moved through one of the most significant market shifts seen in global governance operations in recent years. As shareholder engagement becomes more influential in investment decision-making, the weakness of legacy voting models is becoming harder for both issuers and investors to absorb. 

What drove Australia's proxy voting transformation? How is digital infrastructure changing visibility, control and participation across the voting chain?

The factsheet combines findings from earlier research with market interviews to examine the operational and governance challenges created by legacy proxy voting structures. It looks at rising cost, limited transparency, low participation and the role of digital connectivity in improving voting outcomes across the Australian market.

The research, developed in partnership with Proxymity, highlights:

• The previous model created rising cost, weak visibility, low participation and greater operational effort across the market

• 20% annual cost rise for 26% of investors: proxy voting costs increased materially for a significant share of market participants

• 38% still lack voting visibility: many issuers remain unable to see how shareholders voted under legacy structures

• Up to 65% of issued capital not voted: outside the ASX 300, a large share of capital still does not participate in voting

• The new model connects all ASX 50 firms and sub-custodians, improves transparency and eliminates lost votes