AMP Capital Investors – which each year votes on 1600 resolutions at shareholder meetings – has released its bi-annual “corporate governance update”. It questions whether the Australian market has found a balance on corporate governance and focusing on the importance of substance over form in rules.

Australian Equities director Michael Anderson says good corporate governance rules are essential. Increased levels of regulation have a positive effect on company performance and “should set a framework for mature corporate behaviour”.

He says while AMP Capital is pleased to see a more solid framework for corporate behaviour, it is important for the process to add value and not merely be “box-ticking over wise decisions”.

“While good corporate governance does not in itself guarantee good performance, we are strongly of the opinion that it can reduce risks,” he said.

Last year the company submitted votes on more than 1600 resolutions at shareholder meetings, with almost 200 plans not supported for reasons including low performance hurdles and poor disclosure of plan terms and conditions.