ASIC finalises collective action guidance

— 1 minute read

The corporate regulator has updated its guidance on collective action by investors following a consultation with the industry earlier this year.

ASIC has updated Regulatory Guide 128 Collective action by investors (RG 128) to reflect its consultation with industry participants announced in February 2015.

According to ASIC, the new guidance includes illustrative examples of conduct which is unlikely or more likely to trigger the takeover and substantial holding provisions.


It also includes an outline of ASIC’s approach to enforcement of these provisions in the context of collective action by investors, which includes considering whether the conduct is seeking control rather than simply promoting good corporate governance, said the regulator.

Finally, the new guidance provides an overview of some other legal and regulatory issues that can arise in relation to investor engagement, ASIC said.

ASIC Commissioner John Price said effective investor engagement "forms the foundation of good corporate governance and can enhance the long-term value of companies".

"Our guidance details how investors can effectively influence the corporate governance of the companies in which they have invested collectively without contravening the principles underlying takeovers and substantial holding provisions of the law," Mr Price said.

"As part of this policy update, ASIC has also discontinued class order relief that facilitated voting agreements between institutional investors as it does not reflect the way institutional investors tend to engage with entities and has not been used for many years," ASIC said.



ASIC finalises collective action guidance
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