Strength in numbers: why you should give ASA your proxies

As a retail investor, it can sometimes feel a bit lonely.

Your thoughts and opinions about how a company should be managed, and whether the decisions of a company’s Board and Executive are appropriate, can often appear to fall on deaf ears.

Your modest holding in a company can be dwarfed by the institutional investors, making it seem like you can never influence the direction and governance of your investment.

To put it another way, you are a proverbial ant, faced with the institutional elephant.

Yet, while the lowly ant cannot achieve much by itself, swarms of ants can build large structures, working together as an overwhelming, irresistible, and well-organised force.

So too, as the AGM season approaches, the power of your vote cannot be overstated.

Retail shareholders, when united, can form a powerful and effective voice for good governance and corporate change, even when their views differ from those of institutional investors.

The value of retail shareholders

Institutions invest other people’s money, making it easier for them to sell off underperforming investments.

For retail shareholders, it’s different—your money is on the line, and your commitment runs deeper.

That’s why it’s crucial to exercise your right to attend AGMs, ask questions, and vote.

But with busy schedules, not everyone can be there in person. The solution? Give a proxy.

Understand the power of proxies

Shareholders have the right to vote or appoint a representative, that is a proxy, to vote on their behalf on critical issues such as the election of directors and Executive remuneration.

Every shareholder, regardless of the size of their holding, can participate in proceedings, either directly or through a trusted representative.

The Australian Shareholders’​ Association offers a unique opportunity to amplify your influence in corporate governance by exercising a proxy right on your behalf.

How ASA is fighting for shareholder rights

Anybody can be your proxy, able to speak and vote on your behalf.

However, the complexity of corporate resolutions can often be daunting, and not everybody has enough time or background knowledge to put forward the most appropriate position to protect your interests.

As your association, however, ASA is a trusted representative, able to ensure that your vote counts and is cast with informed judgment by other retail investors, guided by a deep understanding of the issues at stake.

When you, your friends, or your family give a proxy to ASA, it contributes to a collective voice that holds significant sway in AGMs, creating a strong presence through strength of numbers, that allows us to hold directors to account and to advocate for better governance practices.

We have a team of volunteer company monitors who continually assess the performance and governance of listed companies to protect the interests of retail shareholders, by engaging directly with company boards, scrutinising reports, and preparing voting intentions that reflect the best interests of individual investors.

Last year ASA was entrusted with $2.8 billion worth of proxies, reflecting the strong confidence that retail shareholders place in the association.

When you give your proxy to ASA, you help to ensure that the collective voice of retail shareholders is strong enough to influence corporate governance.

The more proxies ASA holds, the greater our impact when we meet with company directors and appear at AGMs, counteracting the significant voting power concentrated in the hands of institutional investors.

Privacy and security: your information is safe

A common concern among shareholders is the confidentiality of their investment information when appointing a proxy.

In the current climate of heightened fears about cyberattacks, this can be understandable.

However, when you give your proxy to ASA, your specific shareholding details remain private – the only entity that knows the exact number of shares you own, or their value, is the share registry itself.

ASA does not have access to this information, ensuring your privacy is fully protected.

Take action: secure your voting power

As the AGM season approaches, the influence of your vote is more critical than ever.

By appointing ASA as your proxy, you ensure that your voice is heard, and your investments are protected.

Become a member and keep an eye out for the Friday email during AGM season, so that you know when you need to submit your proxy and how to do it.

By working together, we too can be an overwhelming, irresistible, and well-organised force.

Your proxy has the power to drive meaningful change in corporate Australia — don’t let it go to waste.

Join ASA to strengthen your voice in corporate governance and protect your investments.