Securities lending, empty voting and corporate governance

This paper examines the corporate governance implications of securities loans, in particular the impact of
securities loans on shareholders’ voting rights and the control of listed Australian companies. The paper
considers whether the current regulatory framework for securities loans in Australia adequately addresses
the concerns associated with securities loans and whether reform is required in order to protect the
interests of shareholders in listed Australian companies and to ensure that the governance of these
companies is not undermined by securities loans.