Article by Lonwabo Mtyeku – GP News Media, Community Newsroom
Johannesburg, South Africa – 15 October 2025
South Africa’s corporate governance landscape is in the midst of a profound transformation — and at the centre of it lies proxy voting, now emerging as a powerful force driving accountability, transparency, and inclusion in boardrooms across the country.
The rise of digital platforms, a growing focus on ESG (environmental, social and governance) goals, and an increasingly assertive shareholder base are converging to reshape how decisions are made in corporate South Africa.
“Proxy voting plays a central role in corporate accountability, enabling shareholders — especially institutional investors and asset owners — to participate in critical decisions on governance, ESG, and remuneration, even when they cannot attend meetings in person,” says Sam Dahya, Head of Investor Services, Custody and Investment Administration at Standard Bank Corporate and Investment Banking (CIB).
A New Era of Governance
The evolution of proxy voting reflects a broader shift in investor expectations. Shareholders today demand greater transparency, inclusivity, and responsiveness from the companies they invest in. They want assurance that their votes are counted accurately, that their voices influence boardroom dynamics, and that corporate actions align with long-term sustainability goals.
South Africa’s proxy voting ecosystem is a complex yet collaborative network — comprising shareholders, issuers, custodians, proxy advisors, transfer secretaries, and regulators — all playing critical roles in upholding governance integrity. Custodians, in particular, act as trusted intermediaries, ensuring voting instructions are executed correctly and that shareholders remain informed and empowered throughout the process.
“Increasingly, clients expect real-time visibility into how their votes are processed,” Dahya explains. “In response, Standard Bank has invested heavily in digital solutions that automate instruction flows, reduce manual intervention, and provide detailed audit trails.”
Digitisation Enhancing Efficiency and Transparency
Standard Bank’s proprietary proxy voting platform exemplifies this new digital direction. Seamlessly integrated with South Africa’s STRATE e-voting portal, Proximity, and global systems like Broadridge, it allows institutional investors to participate effortlessly across multiple jurisdictions.
This multi-channel connectivity enhances operational efficiency, strengthens governance participation, and reinforces Standard Bank’s leadership in delivering secure, scalable, and globally aligned voting solutions.
However, despite the clear technological progress, regulatory frameworks remain behind the curve.
“Current legislation still limits shareholder communication to registered mail or email — clearly out of step with modern digital platforms,” says Palesa Banda, Head of Custody at Standard Bank CIB. “To truly drive participation and efficiency, regulation must evolve to align with today’s digital capabilities.”
Governance Reform and the King Code
Momentum for reform is building. The proposed King V Code on Corporate Governance, expected to succeed King IV, will likely place stronger emphasis on transparency and real-time disclosure.
Under the current King IV framework, issuers are only required to publish the outcomes of resolutions. However, growing investor activism has intensified calls for companies to release detailed AGM minutes and contextual explanations behind key decisions.
South Africa already holds a strong foundation. The market has operated in a fully dematerialised environment for more than two decades and was among the first globally to enable virtual and hybrid AGMs — even before the COVID-19 pandemic made them standard practice.
Beyond Functionality: Toward Global Leadership
Despite these achievements, experts agree that more needs to be done for South Africa’s proxy voting system to become truly world-class.
“We see three priorities going forward,” Dahya says. “First, deeper digital integration across the ecosystem to improve interoperability and client choice. Second, real-time vote tracking and reporting. And third, regulatory frameworks that enable modern participation rather than restrict it.”
Both Dahya and Banda also point to the potential of artificial intelligence (AI) to revolutionise the field — from predicting voting trends to improving shareholder engagement and compliance forecasting.
“As custodians, we have a responsibility to equip shareholders with the tools, insights, and infrastructure to act with confidence,” Banda adds. “This goes beyond operational efficiency — it’s about empowering investors to influence the companies they own in ways that are transparent, timely, and aligned to long-term value creation.”
Setting a Global Benchmark
As proxy voting continues to evolve, it is clear that South Africa stands at the threshold of global leadership in this space. By leveraging technology, modernising regulation, and deepening collaboration between industry players, the country can set a new benchmark for responsible, digital-first shareholder engagement.
“With increased industry collaboration, we can go beyond simply modernising proxy voting,” concludes Dahya. “South Africa has the potential to lead the world in how shareholder engagement is effectively executed.”
Tags: #CorporateGovernance #ProxyVoting #StandardBank #ESG #ShareholderActivism #DigitalTransformation #KingCode