Boosting the transparency of proxy advisors is a welcome move to increase accountability around decisions with economy-wide consequences, Business Council chief executive Jennifer Westacott said.

“Proxy advisors play a critical role maintaining accountability for shareholders, the significant influence they wield demands that the advice they provide is rigorous and professional.

“Shareholders and businesses both need confidence that proxy advice is based on the best available facts and expertise about how decisions are made.

“The decisions proxy advisors make have big implications on the way businesses are run and on the economy more broadly, so making sure advice is based on accurate information is crucial. 

“The integrity of this system of advice is important to every Australian. Just as businesses are required to disclose information to shareholders, proxy advisors need to be clear and upfront about how they come to decisions, whether they’ve checked their facts and about the implications of their advice.

“We look forward to working with the government to get the balance right, ensuring shareholders have access to independent advice of the highest possible standard.”