Shareholder activists target long-serving and over-committed directors

By Stephen Letts

Big proxy advisory firms are campaigning to ensure the majority of directors in a boardroom should be truly independent, leading to significant implications for corporate Australia and the structure of its boardrooms.

So when does an independent director cease to be independent and how many directorships are too many?

Regulators ASX and ASIC do not have definitive rulings but the trend will particularly target businesses where families or founders have large share holdings in the business.

Shareholder activist Stephen Mayne says big companies will increasingly get strong protest votes against entrenched directors.

From:: Shareholder activists target long-serving and over-committed directors