Danger: undirected proxy!

ASIC has confirmed that there is a significant problem in the new Two Strikes rule.

A legislative oversight means that chairs cannot vote undirected proxies on the remuneration report (see our Corporate Insights of 9 August).

The reasons for this are highly technical ( see here for full details).

The Government is reportedly looking at a permanent legislative fix for the problem. Pending that fix, ASIC says that companies have four options when considering how to address the problem at their upcoming AGM:

• make no change to the company's usual proxy form and ensure that the chair does not vote any undirected proxies on the remuneration report resolution;
• change the company's proxy form with a view to ensuring that there are more directed proxies, which can be counted in the vote on the remuneration report;