Non-Objecting Beneficial Owner (NOBO): What It Means for Australian Shareholders

In the world of investing, shareholder privacy and corporate transparency often collide. One concept at the heart of this dynamic is the Non-Objecting Beneficial Owner (NOBO). While NOBOs have long been a feature of North American markets, their relevance is growing in Australia as listed companies, brokers, and investors grapple with changing regulations and the push for greater shareholder engagement in 2025.

What is a Non-Objecting Beneficial Owner (NOBO)?

Simply put, a NOBO is a shareholder who holds their shares through a nominee or brokerage account but does not object to having their identity and contact information disclosed to the company whose stock they own. This contrasts with Objecting Beneficial Owners (OBOs), who choose to keep their details private from the company.

In Australia, most retail investors hold shares via the CHESS system (ASX’s Clearing House Electronic Subregister System) as either CHESS-sponsored or issuer-sponsored holders. However, with the rise of global online brokerages and nominee structures, the distinction between NOBOs and OBOs is increasingly relevant for ASX-listed companies and their shareholders.

• NOBOs: Allow their details to be passed on to the issuing company.
• OBOs: Instruct their broker or nominee to keep their ownership confidential.

Why NOBO Status Matters in 2025

Recent regulatory and technological changes are making NOBO status more important than ever in Australia. The ASX’s ongoing CHESS replacement project, which continues to evolve in 2025, aims to modernise share registry and settlement processes. At the same time, the Australian government is pushing for stronger corporate transparency and shareholder rights, with reforms to proxy voting and disclosure rules.

For companies, having access to NOBO information means better communication with actual beneficial owners, not just the nominees or custodians on record. This is critical for:

• Shareholder engagement: Companies can directly inform NOBOs about annual meetings, dividends, and corporate actions.
• Proxy voting: Accurate identification ensures that voting rights are exercised by the true owners, aligning with 2025’s focus on governance integrity.
• Regulatory compliance: As transparency standards rise, companies need to know who owns their shares to meet reporting obligations.

For investors, choosing NOBO status can mean:

• Receiving direct updates and invitations from companies.
• Having a stronger voice in corporate decisions.
• Potentially faster access to dividends and entitlements, since the company knows who you are.

Real-World Scenarios: NOBOs in Action

Let’s consider a few examples of how NOBO status plays out in Australia:

• Retail investors using global brokers: With the growth of platforms like Stake, Superhero, and eToro, more Australians are holding ASX shares via nominee structures. In these cases, investors may be asked whether they wish to be disclosed as NOBOs. Those who opt in are more likely to receive direct company communications.
• Company takeovers and capital raisings: When an ASX-listed firm launches a rights issue or is subject to a takeover, the ability to reach beneficial owners quickly is crucial. Companies with a high NOBO ratio can inform their real shareholders directly, speeding up the process and improving participation rates.
• Proxy voting reforms: ASIC’s 2024–25 guidance on proxy voting emphasises accuracy and transparency. NOBO status helps ensure votes are cast by the real owners, reducing errors and disputes during contentious AGMs.

How to Check or Change Your NOBO Status

If you hold shares through an online broker or a nominee account, your NOBO or OBO status is typically set when you open your account. However, it can often be changed by contacting your broker. Consider the following when deciding:

• Do you want direct company contact? If so, being a NOBO is preferable.
• Do you value privacy above all? Then OBO status may suit you, but you might miss out on some direct benefits.
• Are you an active shareholder? Voting at AGMs and participating in corporate actions is easier as a NOBO.

In 2025, as transparency becomes a key theme in Australian corporate governance, expect more brokers to inform clients about the implications of their NOBO/OBO choices.

Looking Ahead: The Future of NOBOs in Australia

With the ASX CHESS replacement expected to further streamline shareholder identification and the government’s ongoing reviews of beneficial ownership disclosure, the NOBO concept is set to gain traction. As companies and investors adapt, those who understand and manage their NOBO status will be better positioned to take advantage of shareholder rights and opportunities in the evolving market landscape.