Institutional Shareholder Services (ISS), a prominent proxy advisory firm, has urged Rio Tinto shareholders to approve a proposal to review the miner's dual-listed structure. This recommendation comes amid sustained pressure from activist investor Palliser Capital. Palliser has argued that the dual-listed structure has cost shareholders billions of dollars in value.
ISS's backing significantly amplifies the activist investor's campaign, recommending that shareholders vote on April 3 to support Palliser's non-binding resolution. Palliser contends that the dual listing is a reason why Rio Tinto's stock trades at a discount to its peers. The firm advocates for unifying the two listings into a single holding company in Australia.
This development increases pressure on Rio Tinto's board to address the concerns raised by Palliser Capital and now supported by a key proxy advisor. The outcome of the shareholder vote will be a critical indicator of investor sentiment regarding the company's corporate structure. It represents a material challenge to the company's governance.
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