The Australian Stock Exchange will review requirements for shareholder approvals in mergers and acquisitions, following James Hardie Industries Plc's A$14 billion ($11.76 billion) deal in March to take over AZEK Co.
In a statement on Sunday, the ASX said Australian institutional investors had voiced concerns about current shareholder approval requirements and that the exchange would update an analysis from 2017.
The ASX said this would be the first step toward a "review of shareholder approval requirements," including the circumstances in which companies need to disclose a waiver from the listing rules.
ASX Managing Director and Chief Executive Officer Helen Lofthouse said in the statement that investors have made it clear "they want a greater voice for shareholders invested in ASX-listed companies."
"But we are also mindful that we need to examine this question in a way that ensures we serve the needs of the market as a whole," she said. The Australian Financial Review was the first to report the story on Sunday.
According to the exchange, the decision to conduct a review came after a number of approaches and inquiries to the ASX over its decision to allow James Hardie to proceed with the acquisition of home-decking provider AZEK in March without seeking shareholder approval.
