Re-engaging Lost Shareholders: An FAQ Guide to Stronger Governance, Lower Risk and Better Investor Management

At any point in time, most listed companies will have a portion of shareholders classified as lost members, investors whose contact details are no longer current and who cannot be reliably contacted. 

While this may seem like an administrative issue, lost shareholders represent a material governance, security and cost risk if left unmanaged. Re-engaging with them is no longer just about compliance, it is about protecting your register, your shareholders and your reputation. 

Below, we answer the most common questions we receive about lost shareholders and why proactive re-engagement matters. 

What is driving the need to re-engage lost shareholders? 

Under the Corporations Act, companies are required to send mandatory communications, such as AGM notices and corporate action materials - to all registered shareholders, including those classified as “lost”. 

Amendments introduced in September 2023 allow companies to cease sending communications to lost members only if a genuine and reasonable attempt is made to contact them within a 6–18 month window. 

Until that attempt is made: 

• Communications must continue 
• Print, mail and administration costs continue 
• Governance and fraud risks remain 

Re-engagement is therefore the mechanism that enables relief for companies, and mitigates risk. 

What is a “lost shareholder”? 

A lost shareholder is a securityholder for whom the issuer or share registry does not have: 

• A current postal address, and/or 
• Valid electronic contact details 

As a result, they cannot be reliably reached.

Why are lost shareholders a risk? 

Lost shareholders are not just inactive - they are vulnerable. 

From a fraud and governance perspective, uncontactable and dormant accounts: 

• Are prime targets for identity theft and share-market fraud 
• Reduce the overall integrity of the register 
• Create blind spots in shareholder engagement 
• Increase regulatory and reputational exposure 

ASIC has highlighted the growing risk of stolen shares resulting from identity theft, and industry bodies have noted increasingly sophisticated tactics used by criminal syndicates to exploit gaps in shareholder data. 

A current, engaged and contactable shareholder is the first and best line of defence for their own assets. 

Isn’t this just a compliance exercise? 

No — and that distinction matters. 

While re-engagement supports compliance with the Corporations Act, its value extends far beyond that. Proactively re-engaging lost shareholders: 

• Shrinks the attack surface for fraud 
• Improves register accuracy and data quality 
• Demonstrates strong corporate citizenship 
• Supports ESG principles of fairness and inclusion 
• Strengthens investor trust and goodwill 
• Reduces long-term communication costs 

How does Automic attempt to re-engage lost shareholders? 

Automic’s Shareholder Reunification Service is designed to be thorough, defensible and low-touch for issuers. 

The service includes: 

• Partnering with trusted third-party asset recovery specialists 
• Searching an exhaustive range of eligible public databases 
• Identifying potential alternate contact details 
• Engaging CHESS Participants to update records where applicable 
• Conducting targeted outreach where new contact details are identified 

Our investor services team then makes the reasonable attempts required under the Act on your behalf. 

What happens if we don’t re-engage? 

You can choose not to proceed, however, the consequences are ongoing: 

• Lost shareholders must be reinstated into communications 
• Print and postage costs continue 
• Fraud exposure remains elevated 
• Engagement gaps persist 
• Administrative effort increases 

In short, opting out means carrying forward cost and risk that could otherwise be reduced. 

Can we see our lost shareholder data? 

Yes. Automic can provide: 

• The number of lost shareholders on your register 
• The percentage of your register affected 
• A list of lost holders where required 

This transparency allows issuers to make informed governance decisions. 

What are the key benefits of re-engaging lost shareholders? 

✔ Reduced exposure to fraud and identity theft 
✔ Improved register accuracy and integrity 
✔ Increased shareholder engagement 
✔ Lower print and mail costs over time 
✔ Stronger compliance position 
✔ Clear demonstration of responsible governance 

The bigger picture: beyond compliance 

As highlighted in Beyond Compliance: Fortifying Your Register Against Modern Share-market Fraud, the threat environment has changed. Fraud is more coordinated, more sophisticated and more opportunistic than ever before. 

Re-engaging lost shareholders is a simple but powerful control that: 

• Reduces dormant vulnerabilities 
• Supports a joined-up security ecosystem 
• Reinforces trust in your company as a custodian of investor assets 

It is not just about meeting obligations, it is about building resilience.