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Trump-Era Curbs on Shareholder Activism Find Favor in Australia

  • Government to impose tougher rules on proxy advisory firms
  • The companies can have a big influence on investors’ votes
Updated on

Australia is seeking to curb the influence of activist investors that force firms to battle climate change and hire more senior women by adopting similar laws imposed by the Trump administration last year.

So-called proxy advisory firms that consult with the nation’s biggest shareholders on corporate governance will be required to have a financial services license and prove they’re independent of their clients, according to a government statement Friday. They’ll also have to disclose their voting advice to target companies on the same day that it’s given to clients.