The government’s commitment to boosting the transparency of advice and decisions made by proxy advisors is a welcome step towards greater accountability, Business Council President Tim Reed said.

“The decisions made by proxy advisors have big implications on how businesses run and their ability to make returns for shareholders, so of course the system should be as transparent as possible.

“Proxy advisers have a role in ensuring businesses are accountable to shareholders, but advisers must also be subject to appropriate levels of accountability given the significant influence that they now wield.

“When proxy advisors provide advice, companies should have chance to respond and all the facts should be on the table about how decisions that impact people’s lives are made.

“We look forward to contributing to this review and working with the government to deliver a system that gives shareholders the transparency and accountability they need to trust the system.”