Australian shareholders 'struggle to assess boards'

A new study has indicated that shareholders in Australian companies encounter problems when trying to assess the performance of company boards and individual executives.

The Australian Council of Super Investors (ACSI) said boards need to be more effective in their disclosure of information about issues such as strategic planning and risk oversight, AAP reports.

Commenting on the findings, ACSI chief executive Ann Byrne claimed board members should expect their activities to be placed under greater scrutiny from shareholders as "one of the enduring impacts of the global financial crisis".

Under the current system, assessing the performance of a company's executives is often only possible in the wake of a major disaster, she added in the report.

"Currently our only means is to form a view about directors who have sat on a board when there has been a company failure," Ms Byrne said.

ACSI campaigns for gender diversity in Australian boardrooms and claimed earlier this month that the number of female directorships at ASX100 companies has been "flat-lining" since 2003.