What is a ‘Lost Shareholder’ and Why Reunifying them Matters Now

In today’s fast‑paced corporate world, a “lost shareholder” isn’t merely a record‑keeping issue, it presents a governance and security risk that can undermine trust and value. These invisible investors have simply slipped off the radar, with outdated contact details leaving cash or shares unclaimed. By proactively identifying and reconnecting with these individuals, companies not only comply with ASX guidance and ASIC regulations, but demonstrate purposeful stewardship and solidify stakeholder confidence. Restoring this lost value isn’t just good governance, it’s ethical leadership in action.

What is a ‘lost shareholder’

A lost shareholder is an investor you can no longer contact because their address, estate details, or account information is out of date.  Lost shareholders typically emerge for three predictable reasons: 

• Corporate actions such as demergers, or demutualisation
• Estate oversight when an investor dies and beneficiaries are unaware of the holdings 
  
• Relocation where owners move without updating their contact details 

Why shareholder reunification is needed 

Credible governance

Sound governance relies on leadership oversight, transparent remuneration, independent audits, rigorous internal controls, and the protection of shareholder rights. In Australia the governance spotlight now extends to unclaimed shareholder assets. Under several sections of the Corporations Act 2001, a company that has been unable to contact a shareholder for six years or more must transfer the cash or share entitlements to ASIC, together with evidence of reasonable search efforts. A key provision includes section 1343 ¹ 

The numbers are significant: Australian investors have misplaced about AUD 1.1 billion in unclaimed money, with roughly 150,000 retail shareholders disconnected from their holdings. ² 

Restoring value

Shareholders are resetting their expectations. Profit must now sit alongside responsible stewardship of the environment, ethical conduct, and rigorous governance. At Automic we view this shift as an opportunity to lead. Our shareholder reunification service tracks down lost holders and reunites them with their investments showing practical corporate citizenship and deepening trust. Restoring value to its rightful owners is not only sound governance but also simply the right thing to do. 

Reuniting Assets

Reconnecting investors is a proactive way to lift participation, maintain a clean register, and ensure that every holder’s details are current. Our service includes: 

• partnering with a trusted asset recovery expert 
• scanning eligible databases to locate potential alternative addresses and contact details 
• engaging with CHESS participants to update records
• contacting members via email where an address is available
• conducting an outreach programme when an alternative contact is established 

If you have legacy investors or shareholders whose whereabouts are unknown, Automic can help. Our dedicated Shareholder Reunification team specialises in tracing lost holders and returning their entitlements. To discuss launching a programme, contact your CSM or fill out this form. 

¹ https://www.asic.gov.au/regulatory-resources/financial-services/unclaimed-money/how-to-lodge-unclaimed-money-under-the-corporations-act/ 

² https://www.australianshareholders.com.au/how-to-find-lost-dividends-and-shares/