The former Reserve Bank of Australia (RBA) governor will chair the new advisory group, which was established to replace the ASX corporate governance council in line with expert recommendations from a report from 16 October.
As independent chair, Lowe will be supported by a small, expert group comprising a cross-section of issuers and investors, all bringing experience in the governance of listed entities.
The expert report, which reviewed the workings of the 19-member ASX corporate governance council, deemed its structure cumbersome and unable to reach consensus among members – advising a complete overhaul and fresh start.
Supported by the AGCG, the Australian listing exchange will now assume primary responsibility for developing, approving and issuing the ASX Corporate Governance Principles and Recommendations (Principles).
These principles will cover issues such as board structure, risk management, corporate culture, disclosure and executive remuneration.
ASX chief executive, Helen Lofthouse, said the exchange was “delighted” to welcome Lowe, citing his extensive knowledge of Australian financial markets, policy development, and stakeholder engagement.
“The creation of an expert advisory group is part of how we continue to evolve Australia’s capital markets in partnership with our customers,” Lofthouse said.
She added that the ASX will collaborate closely with Lowe to swiftly identify and appoint advisory group members, aiming to commence work as soon as possible.
“I would once again like to thank the 19 members of the ASX Corporate Governance Council, who have played a critical role in shaping corporate governance for Australian listed entities for more than two decades.
“We aim to remain connected with these members through the ongoing work of the new advisory group,” she said.
Commenting on his appointment, Lowe said: “Strong corporate governance remains central to the strength and reputation of Australia’s public markets, which is why I am pleased to accept this role.”
He further stated that the new advisory group presents an “important opportunity” to implement practical governance methods, thereby increasing long-term value for both shareholders and listed entities.
“I am confident that through open dialogue, broad consultation and evidence-based advice, ASX with the support of the advisory group can develop Principles that are widely supported by the market,” Lowe said.
Lowe was governor of the RBA from 2016 to 2023, until his departure in September of that year when he was replaced by Michelle Bullock.
His over four-decade tenure at the RBA also included significant roles such as assistant governor (financial system) during the Global Financial Crisis, as well as working at the Bank of International Settlements.
Since leaving the reserve bank, he has taken on a select number of roles including as chair of social investing firm, Future Generation Australia. He currently serves on the boards of the Victor Chang Cardiac Research Institute and Barrenjoey Capital Partners.
Nominations for AGCG members are now open and will be sought from relevant peak bodies and other stakeholders.
According to the ASX, examples of AGCG members being sought after include a significant superannuation fund chair, an experienced investment manager, and a stockbroker with broad expertise across retail and institutional investors.
The establishment of the AGCG is part of a range of other initiatives underway at ASX, including the recent release of a consultation paper proposing amendments to the ASX Listing Rules. These changes relate to shareholder approval for dilutive acquisitions and modifications to the admission status of dual-listed entities.
