ASX Advisory Group gives update on corporate governance revision

The Advisory Group on Corporate Governance (AGCG) for the ASX has met for the third time, providing an update on the revision of the ASX's corporate governance principles, which were last updated in 2019.

The AGCG said its priority was to complete the revised the principles by the end of 2026.

"This advice would build on the extensive work and consultation undertaken by the previous ASX Corporate Governance Council," it said.

In the latest meeting, the AGCG retained the existing eight principles, stating that each principle is important and highlights the "critical aspect of the 'if not, why not' framework'".

"The explanatory material has also been revised and is designed to help entities, rather than create additional obligations," the communique read.

A consultation on the principles will take place in mid-July, which will include a mix of public forums, industry consultations and roadshows, along with written submissions, the AGCG said.

Further, across corporate governance, the AGCG discussed the frequency of director elections and concluded that, at this point in time, "there is not a compelling case to introduce a recommendation dealing with director elections."

It also suggested an improved remuneration structure for non-executive directors, noting they can play an important role to appropriately reward long-term value creation, while preserving independence.

"The AGCG will continue to assess evolving practice, including through ongoing engagement with market participants and regulators," it said.

They will next meet on 8 July 2026.

The AGCG was assembled in November 2025 following concerns around the governance and operational aspects of ASX over recent years, it is currently chaired by former Reserve Bank of Australia governor Philip Lowe.

The group also welcomed seven new members in the beginning of the year, including AustralianSuper chief investment officer Mark Delaney, former APRA executive Helen Rowell, and TelstraSuper's Dominique d'Avrincourt, along with governance professionals including Pru Bennett, Tim Paine, Peter Torre and Nicola Wakefield Evans.