AGL Energy’s board has been told to “dig deep” and “be brave” by the organisation representing retail shareholders as it struggles to set a new strategy for the coal power generation giant that will steer it along the journey to low-carbon energy while preserving value for investors.

The comments from the Australian Shareholders’ Association policy adviser Fiona Balzer, come amid a mixed reception to the news on Monday that existing director Patricia McKenzie has been appointed as chairman. The views of the ASA carry more weight than perhaps with some other companies because retail shareholders account for more than half of AGL’s share register.