Australia’s corporate scene is no stranger to high-stakes takeovers and foreign investment battles. But in 2025, there’s one tool that’s grabbing the attention of investors, policy-makers, and the public alike: the golden share. While golden shares aren’t new, their renewed relevance in the Australian context is shaping the way we think about ownership, control, and the protection of critical assets.
What Is a Golden Share—and Why Is It Back in the Spotlight?
A golden share is a special type of share that gives its holder—often a government or strategic investor—unique veto rights or other powers over corporate decisions. Unlike regular shares, golden shares might grant the right to block takeovers, approve or reject changes to company structure, or influence key board appointments, regardless of how many ordinary shares are held.
In the 1980s and 1990s, golden shares were commonly used across Europe and Asia during waves of privatisation, allowing governments to retain a final say over companies considered vital to national interests—think energy, telecommunications, and defence. Fast-forward to 2025, and golden shares are being talked about again in Australia as strategic assets and infrastructure come under the microscope amid shifting global dynamics.
Golden Shares and Australian Policy in 2025
With growing concerns about the security of critical infrastructure and data, the Australian government has taken a fresh look at golden shares as a policy tool. Recent moves include:
- Critical Infrastructure Protection: In 2024, amendments to the Security of Critical Infrastructure Act paved the way for golden shares to be used in newly privatised or foreign-invested assets, such as ports, energy grids, and telecommunications.
- Foreign Investment Reviews: The Foreign Investment Review Board (FIRB) now recommends golden shares as an option when approving takeovers of companies in sensitive sectors, especially when national security or data sovereignty is at stake.
- High-Profile Cases: In early 2025, the government exercised golden share rights to block a major foreign acquisition of a leading Australian cloud provider, citing national cyber security priorities. This high-profile intervention sent ripples through the market, highlighting the real-world power of golden shares.
These developments underscore the government’s willingness to act decisively when it comes to safeguarding assets seen as essential to Australia’s economic and security interests.
Real-World Impact: How Golden Shares Are Shaping Deals
Golden shares don’t just sit on the books—they have a tangible impact on deal-making, investment strategy, and boardroom dynamics. Here’s how they’re playing out in practice:
- Deal Structuring: Investors and acquirers are factoring golden share provisions into their due diligence. In sectors like energy and data infrastructure, bids must now account for the possibility that a single golden share could derail a multi-billion-dollar takeover.
- Corporate Governance: Boards of companies with golden share arrangements must carefully navigate the interests of both regular shareholders and the golden shareholder (often the government or a strategic local entity). This can complicate decision-making but also provides a check against moves that could undermine national interests.
- Market Perception: While golden shares provide reassurance on sovereignty, some investors worry about unpredictability and potential government intervention. However, the government maintains that golden shares are used sparingly and transparently, balancing national security with Australia’s open investment ethos.
For example, in 2025, the sale of a major Australian port to a consortium involving foreign investors was only approved after a golden share was granted to the Commonwealth, giving it the right to veto any future changes in control. This approach reassured both the public and markets that strategic oversight would be maintained.
Looking Ahead: The Future of Golden Shares in Australia
As Australia continues to attract global investment, especially in technology, energy, and infrastructure, golden shares are likely to remain part of the policy toolkit. Expect to see ongoing debate about the right balance between openness and security, as well as evolving legal frameworks to ensure golden shares are used effectively without stifling innovation or investment.
For companies, investors, and policy-watchers, understanding how golden shares work—and where they’re likely to be deployed—will be essential in navigating the next wave of corporate deals and reforms.
