Corporate Governance
Cbus holds shares in the companies in which your super is invested. As shareholders, we believe we have an obligation to ensure that these companies are directed and controlled in an appropriate way. We believe this will enhance a company’s investment performance over the longer term, and produce stronger returns for our members.
Proxy voting
For this reason, we have adopted a policy of active engagement in which we use Cbus’ voting power in general meetings of company shareholders. Cbus will generally oppose proposals such as:
• Election of inappropriate directors, particularly where there is not a majority of independent directors;
• Excessive remuneration arrangements;
• Company restructures or takeovers that are not in the interest of shareholders;
• Changes to voting rights that restrict shareholder control over the companies board; and
• Appointment of auditors who are not independent.
A record of the proposed resolutions which Cbus has voted against can be downloaded below.
Corporate engagement
Cbus has a policy of ‘active engagement’ with companies. This means that we regularly meet with and write to the companies in which we invest. Sometimes we do this ourselves, and sometimes it is done by the Australian Council of Superannuation Investors or by the fund managers we appoint to invest money. The kinds of issues that might be raised with companies are:
• Concerns about corporate governance practices
• Questions about environmental practices (for example, a company’s planning for the introduction of an emissions trading scheme)
• Questions about social issues (for example, if a company has a high rate of workplace injury or fatality).
Cbus' Proxy Voting Record - June 2010