Proxy advisers 'becoming too influential in Australian business'

A new report has highlighted the possible corporate governance implications of the growing influence of proxy advisers in Australian business.

The new analysis from the Australian Institute of Company Directors has shown that although the relationship between companies and their advisers has become less adversarial, it may now be evolving to the point where they are acting as decision-makers.

Business professionals surveyed by the organisation have stated that many firms are outsourcing analysis of business operations to proxy advisers, despite concerns over the adequacy of their resources and expertise.

John Colvin, chief executive officer of the Australian Institute of Company Directors, said companies believe that proxy advisers are holding too much power and influence.

He added: "We hope the research will be a catalyst for constructive discussion between everyone involved."

Earlier this month, the Australian Private Equity and Venture Capital Association moved to improve best practice standards in the private equity sector through the launch of a new corporate governance code.