ASX Proposal For Non-Voting Securities

The Australian Securities Exchange (ASX) has issued a public consultation paper and invited feedback on a proposal to allow listed companies to issue and trade in non-voting ordinary shares. The introduction of such changes has the potential to affect the way in which companies float and raise capital. In our view, such a proposal, if adopted, would assist in aligning legal regimes should ASX listed companies wish to dual list in other countries such as FTSE, AIM, NYSX or TSX.

The ASX Listing Rules currently provide that on a resolution to be decided on a poll, ordinary security holders must be entitled to one vote for each fully paid security. The ASX has requested feedback on the proposal to amend this requirement, to allow listed entities to issue non-voting ordinary securities subject to the following conditions: