ASX Proposes 25% Cap on M&A Share Issuance Without Shareholder Vote

By EC Assets · Published 17 June 2026

Australia's ASX has proposed a 25% cap on share issuance in mergers and acquisitions (M&A) without a shareholder vote. These draft new rules were published on Wednesday. The cap would apply to large listed companies in public merger deals. The proposal aims to reduce the number of shares companies in the S&P/ASX300 index can issue. Currently, companies can issue up to 100% of their capitalization without seeking shareholder approval. The new rules would lower this threshold to 25%. This change means that S&P/ASX300 companies would require a shareholder vote if they intend to issue more than 25% of their capitalisation in an M&A transaction. The ASX is the primary stock exchange in Australia. This article is intended for informational purposes only. It does not constitute investment advice.