However, the decision may reduce transparency and stakeholder influence.
To address delays and internal disagreements, the Australian Securities Exchange is dissolving its broad Corporate Governance Council after more than 20 years. Responsibility for setting corporate governance guidelines will now be handled directly by the ASX, supported by a smaller advisory group. The aim is to speed up decision-making and reflect wider industry agreement without unnecessary complications.
Previously, the council included input from 19 member organisations, which often resulted in disagreements over proposed updates. Earlier in 2024, a proposed fifth edition of the principles failed after significant backlash, especially surrounding suggested mandatory disclosures on diversity and personal attributes. This failure led the ASX to step in and form a temporary review group to assess the issue and recommend a new approach.
The outcome is a leaner advisory panel with between six and ten experts responsible for guiding revisions. While the group will seek views from stakeholders, final approval will now rest solely with the ASX board. Governance principles are expected to be reviewed every four years, providing more stability but potentially reducing representation from investor and shareholder groups that previously held positions on the council.
The changes are already generating debate. Several industry bodies are lobbying to be included in the new panel to ensure their perspectives remain part of the governance process. Representatives of superannuation investors, in particular, have expressed concern about the potential loss of influence. While the reforms promise greater efficiency and clarity, some stakeholders fear the reduced scope for diverse input in shaping the rules guiding corporate behaviour in Australia.
