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A Super idea; AGMs for Super Funds

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For more information contact Jeremy Roberts on 0433 620 850 or Nick Xenophon on 0411 626 677

8 / 12 / 2014

Move to make superannuation funds more accountable


In the wake of David Murray’s Financial System Inquiry, Independent Senator for South Australia, Nick Xenophon, foreshadowed changes to superannuation legislation to force super funds to hold AGMs.

Currently there is no requirement for a super fund to hold an AGM to allow its members to question the board about the fund’s performance.

Senator Xenophon said this was in stark contrast to the rights of even minor shareholders in a public company.

“If I have $500 of Qantas shares I can go to the AGM and grill the board about the company’s performance. If I had $500,000 of my life savings in a super fund, there currently isn’t the same right. It really is a glaring gap in accountability that affects millions of Australians.”

Senator Xenophon said the changes he’ll move for to the Superannuation Act in the Senate next year will require a ‘no frills’ AGM that will allow members to question directors about the fund’s performance, and move non-binding resolutions from the floor of the meeting. The costs for notifying members of the meeting would be kept to a minimum as it would be done electronically.

“With $1.8 trillion invested in super funds, nine million Australians deserve to have this right,” said Nick.

Senator Xenophon welcomed a number of the recommendations made by David Murray’s inquiry to make superannuation more efficient, and requiring super funds to have a majority of independent directors and an independent chair.