Read this article in:
4 August, 2005ICEM News release No. 36/2000
Australia's corporate watchdog, the Australian Securities and Investments Commission, has ordered the top five shareholders in Rio Tinto Ltd. to release the names of organisations on whose behalf they hold shares.
The ASIC action comes in response to a request from the Coalition of Rio Tinto Shareholders, which is undertaking a proxy campaign for the mining multinational's two forthcoming Annual General Meetings. Under its dual-listing structure, Rio Tinto holds two AGMs - one in London (on 10 May this year) and one in Australia (Brisbane, 24 May).
The Coalition of Rio Tinto Shareholders launched a three-nation shareholder proxy campaign on 8 March. However, its efforts to communicate with fellow shareholders have been restricted by the domination of the Rio Tinto Ltd. share register by nominee companies that are not the beneficial owners of the shares.
This is believed to be the first time that the ASIC has issued a disclosure order with the particular aim of enabling the market to be better informed about a proxy campaign.
Two resolutions have been proposed by the Coalition of Rio Tinto Shareholders. One concerns corporate governance. The other calls on Rio Tinto to ensure that its labour practices worldwide comply with the core labour standards of the UN's International Labour Organisation (ILO).
On this last point, the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM) has already offered to negotiate and sign a global agreement with Rio Tinto. Under such an agreement, the ICEM and its affiliated unions worldwide would verify, among other things, the company's compliance with ILO core standards and would have the right to raise with Rio Tinto corporate management any alleged breaches of these standards.
However, the ICEM has also made it clear that Rio Tinto must resolve current industrial disputes in Australia before such a global agreement can be signed.
The ASIC action comes in response to a request from the Coalition of Rio Tinto Shareholders, which is undertaking a proxy campaign for the mining multinational's two forthcoming Annual General Meetings. Under its dual-listing structure, Rio Tinto holds two AGMs - one in London (on 10 May this year) and one in Australia (Brisbane, 24 May).
The Coalition of Rio Tinto Shareholders launched a three-nation shareholder proxy campaign on 8 March. However, its efforts to communicate with fellow shareholders have been restricted by the domination of the Rio Tinto Ltd. share register by nominee companies that are not the beneficial owners of the shares.
This is believed to be the first time that the ASIC has issued a disclosure order with the particular aim of enabling the market to be better informed about a proxy campaign.
Two resolutions have been proposed by the Coalition of Rio Tinto Shareholders. One concerns corporate governance. The other calls on Rio Tinto to ensure that its labour practices worldwide comply with the core labour standards of the UN's International Labour Organisation (ILO).
On this last point, the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM) has already offered to negotiate and sign a global agreement with Rio Tinto. Under such an agreement, the ICEM and its affiliated unions worldwide would verify, among other things, the company's compliance with ILO core standards and would have the right to raise with Rio Tinto corporate management any alleged breaches of these standards.
However, the ICEM has also made it clear that Rio Tinto must resolve current industrial disputes in Australia before such a global agreement can be signed.