Some of Australia’s biggest superannuation funds want shareholders to have greater powers to be heard at company AGMs.

The Australian Council of Superannuation Investors, which represents $1.6 trillion worth of super funds and institutions, wants shareholders to be able to put non-binding, advisory resolutions on the agendas of company AGMs.

The lobby says this would allow shareholders to “escalate” environmental, social or governance (ESG) issues that company leaders may want to ignore.

It says the current system of so-called “shareholder resolutions” in Australia is flawed, and does not allow adequate shareholder rights.

Most resolutions put to shareholders at company meetings come form or are at leats approved by the company’s board.

At the moment, groups of 100 or more shareholders must be formed to put forward their own resolutions.

These resolutions are not allowed to venture into areas that involve management of the company.

Under ACSI's proposed reform, a non-binding, advisory resolution would only need 50 per cent shareholder support, and require the backing of at least 100 or more shareholders.

Australian shareholders can lodge a protest vote on director and executive pay in some circumstances, but only trigger a resolution on a board spill if more than 25 per cent of shareholders vote against a company's remuneration report two years in a row.

ACSI chief Louise Davidson says there is a “clear consensus” among investors of the need for reform.

She describes the current system as one which “[makes] it very difficult to consider a resolution on its merits, because you are having to think about whether you want to change the constitution of the company to accommodate it”.

The full report is available in PDF form, here.