The ASX’s decision to review disclosure rules for corporate mergers and acquisitions, including the granting of waivers to listing rules, is a belated concession that its handling of James Hardie has undermined shareholder democracy.

The Australian bourse granted one of Australia’s oldest and largest companies a waiver allowing it to bypass local shareholder approval for its $14 billion merger with US outdoor decking group Azek. The deal, which issues 35 per cent more shares in itself to Azek, has been rightly condemned as “value destructive”, especially given the uncertain outlook for US home building. Adding insult to injury, Azek shareholders get a seat at the table to vote on the deal, while local investors will be left holding the cheque.