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2016 (End Year)

“Australia has caught the activist bug in recent times, with increasing numbers of high profile campaigns across a range of sectors occurring and domestic institutions now ready and willing to back activists. Local activist identities are beginning to emerge, from both new players and established fund managers branching out, giving the industry a face amongst financial media and the investment community. This busy environment for activism looks set to continue for some time.”

Shane Murphy, Senior Director

Country:
Australia

Country: Australia

Average % of insider ownership:

2.59

Activism
Threat Level


To learn more about this country, please click on the tabs below

  1. Country Summary
  2. Disclosure
  3. Shareholder Rights
  4. Company Defense

Australia is the third most common target of shareholder activists after the United States and Canada. The Australian legal framework is considered to be fairly favorable to activists and provides for similar activist strategies as those seen in the United States. Additionally, the consistent growth and low-risk environment create an ideal space for activists.

Shareholders reaching or exceeding a 5 percent threshold and each whole percentage point after that must disclose their voting interests.

5 percent or more of voting rights give shareholders power to request directors to call a general meeting (and the directors must do so), call and arrange to hold a general meeting, give a company notice of a resolution they propose to move, and give the company a statement to be distributed to all members.

Australian corporate governance also includes two strikes rules which causes an automatic vote after two strikes to spill the board if 25 percent or more of the votes cast at an AGM are against adopting the company's remuneration report for two successive years.

While shareholders have rights to propose resolutions, the board does not need to put resolutions forward that concern management matters, unless specifically allowed for in the company’s constitution. Activists, therefore, need to frame a resolution as an amendment to the company's constitution to enable a binding vote on a management matter.

Although poison pills are not permitted, a change of control provision in an appropriately drafted loan agreement (poison pill loan) can have a similar effect of discouraging hostile takeovers or shareholder activism.


Top Campaigns by Type

1. Gain Board Representation
2. Removal of CEO or other Board member
3. Cancel Contract

Campaigns By Year

Total
Campaigns

290

Notable Invested Activists

• Sandon Capital
• Oaktree Capital Management
• Lakewood Capital Management

Recent activism campaigns

Pacific Current Group Limited
VS.
 Advocate Strategic Investments
Merchant Funds
VS.
 1-Page Limited
Royalco Resources
VS.
 Noontide Investments Ltd.

Total Active
Campaigns

47

Contact FTI Consulting

Geoff Serednesky

Capital Markets Research and Activist Engagement
Managing Director
+1 312 861 4721
Geoff.Serednesky@FTIConsulting.com

Shane Murphy

Senior Director
+61 8 9485 8804
Shane.Murphy@FTIConsulting.com

Jon Snowball

Senior Director
+61 2 8298 6111
Jon.Snowball@fticonsulting.com