To The Moon

$JAMES HARDIE INDUSTRIES-CDI(JHX.AU)$ $The AZEK Company(AZEK)$ $James Hardie Industries PLC(JHX)$   🚨🧠📈 ASX Awakens: Shareholder Revolt Forces a Seismic Reboot of M&A Rules 📈🧠🚨

When James Hardie Industries ($JHX) surged ahead with its A$14 billion takeover of AZEK Co ($AZEK) without even glancing at shareholder approval, it did more than close a deal,

It detonated a governance time bomb under the Australian Stock Exchange itself.

In response to a rising chorus of discontent from institutional heavyweights, the ASX announced on Sunday a full-scale review of its shareholder approval requirements, its first serious rethink since 2017.

ASX Managing Director Helen Lofthouse confirmed: the market no longer tolerates backroom waivers, opacity, or executive discretion cloaked as efficiency.

💬 Helen Lofthouse:

“Investors have made it clear they want a greater voice for shareholders invested in ASX-listed companies. But we are also mindful that we need to serve the needs of the market as a whole.”

Translation?

The age of unchecked corporate autonomy is closing fast, and a new era of shareholder sovereignty is taking the stage.

📚 Historical Context:

The ASX’s listing rules were built for a world before passive investing, activist super funds, and the global ESG revolution. Seven years without a structural overhaul is a lifetime in today’s capital markets, where governance, transparency, and accountability are demanded at ferocious speed.

🔥 Deeper Context:

   •   🇦🇺 AustralianSuper, UniSuper and Hostplus, among the largest pension funds, have been flexing their collective muscle, warning boards that shareholder sidelining is no longer acceptable

   •   Proxy advisory firms ISS and Glass Lewis are sharpening their knives, poised to scrutinise every waiver and every deal that sniffs of bypassing investor voice

   •   Foreign bidders eyeing ASX targets may now face materially higher deal execution risk, forcing longer timelines, higher premiums, or outright withdrawal

🧠 Fun Fact:

The waiver James Hardie ($JHX) secured was under Listing Rule 11.1.2, which mandates shareholder votes if an acquisition changes the nature or scale of a business. The decision to greenlight without a vote was only disclosed after the fact, fuel for a roaring governance backlash.

🌍 Broader Impact:

   •   🇳🇿 NZX (New Zealand Stock Exchange) is watching closely, A tightening of ASX rules could ripple across the Tasman, triggering a regulatory arms race on shareholder rights

   •   Cross-border M&A flows could slow, as global buyers reassess Australia’s M&A landscape under the new rulebook

🚨 What to Watch:

   •   Timeline for the ASX consultation paper and investor submissions

   •   Pushback from corporate boards arguing that red tape will erode Australia’s M&A competitiveness

   •   Potential for a proxy season “war chest” build-up as funds demand even more voting power in 2025

Hey Tiger Traders, Could this shift make Australia a fortress of shareholder democracy, or a graveyard for fast, opportunistic M&A? Which side would you want to be trading on when the dust settles?

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