The Australian Securities Exchange (ASX) will review its listing rules concerning shareholder approvals for mergers, acquisitions, and reverse takeovers, following significant investor opposition to James Hardie’s $14 billion takeover of US-based Azek. Despite the investor uprising failing to secure a shareholder vote on the Azek deal, it has triggered a broader examination of governance practices surrounding major corporate transactions. This marks the largest investor challenge on the Australian market in over three decades, highlighting growing shareholder activism.
The ASX review will focus on determining clearer guidelines for when shareholder consent is required in such transactions. The existing rules have been criticized for lacking sufficient clarity, leading to disputes over whether certain deals should be subject to shareholder votes. The outcome of the review could significantly impact future merger and acquisition activity in Australia, potentially empowering shareholders with greater influence over corporate decision-making processes. The review’s findings and proposed changes to the listing rules are expected to be released in the coming months.
