Proxy Voting Australia 2025: How Shareholders Influence Corporate Decisions

In 2025, proxy voting is no longer just a procedural detail at company AGMs—it’s become a powerful tool for Australian investors to shape the direction of the businesses they own. With regulatory changes, digital voting platforms, and a wave of shareholder activism, understanding proxy voting has never been more important for retail and institutional investors alike.

What Is Proxy Voting and Why Does It Matter?

Proxy voting allows shareholders to delegate their voting rights to someone else—often a trusted party, proxy agent, or the company chair—when they can’t attend a general meeting in person. This process ensures that even absent investors have a say in key resolutions, from electing directors to approving executive remuneration packages.

• Empowering Minority Shareholders: Proxy voting enables smaller investors to pool influence and hold boards accountable, particularly as ESG (Environmental, Social, Governance) issues move to the forefront in 2025.

• Shaping Corporate Direction: From climate policy to gender diversity, proxy votes increasingly sway major decisions, with companies now required to disclose how proxy votes are cast.

• Increasing Transparency: The ASX and ASIC have tightened rules around disclosure and record-keeping, making proxy voting outcomes more visible and accessible than ever.

2025 Policy Updates: Digital Platforms and Regulatory Shifts

Over the past year, several regulatory updates have changed the proxy voting landscape in Australia:

• Electronic Proxy Voting Mandate: As of March 2025, all ASX-listed companies must provide secure online proxy voting options. This shift, driven by ASIC’s 2024 digital engagement recommendations, has boosted participation rates, especially among younger and remote shareholders.

• Proxy Advisor Code of Conduct: From January 2025, proxy advisory firms are required to register with ASIC and disclose conflicts of interest, increasing trust in their recommendations.

• Stricter Identification: To combat fraud, shareholders appointing proxies must now verify their identity through the company’s registry or approved digital ID platforms.

For example, at the 2025 AGM of a major Australian bank, over 65% of votes were cast via proxy, reflecting both the convenience of digital voting and heightened interest in board-level decisions on climate risk disclosure.

Real-World Impact: Proxy Voting and Shareholder Activism

Proxy voting is increasingly leveraged by institutional investors and advocacy groups to press for change. In 2025, several high-profile AGMs saw significant resolutions passed (or narrowly defeated) thanks to proxy votes:

• Climate Action: Shareholders at a leading mining company used proxy votes to push through a resolution mandating net-zero targets by 2040, overriding board recommendations.

• Executive Pay: At an ASX 100 retail giant, over 40% of proxy votes opposed the proposed executive remuneration report, sending a clear message to the board about pay restraint.

• Board Diversity: Proxy campaigns led to the election of two new independent directors at a major insurer, reflecting calls for greater gender and skills diversity.

These examples underscore the growing sophistication and coordination of proxy voting campaigns in Australia, where even a small percentage of coordinated votes can tip the balance on controversial issues.

How to Make Your Proxy Vote Count in 2025

With more at stake than ever, here’s how Australian investors can maximise the impact of their proxy votes:

• Review AGM Documents: Carefully read the notice of meeting and explanatory notes sent by the company.

• Appoint a Proxy Online: Use your broker or the company’s share registry to appoint a proxy quickly and securely.

• Consider Proxy Advisors: Independent advisors can help you understand the implications of each resolution and how your vote will be counted.

• Communicate Your Intentions: If you’re part of an investment club or SMSF, discuss voting strategies to align your influence.

• Track Voting Outcomes: Review the company’s post-meeting disclosures to see how proxy votes influenced results.

As the 2025 AGM season heats up, proxy voting is more than a formality—it’s your voice in the boardroom, amplified by technology and new rules designed to ensure every vote counts.