A senior fund manager says new governance rules for listed companies are dead in the water and a review by the Australian Securities Exchange needs to give investors a greater say to more closely tie the regime to company profits.

The ASX announced last week that former Commonwealth Bank chairwoman Catherine Livingstone would be part of a four-person review of the ASX’s governance council to mop up after its failed bid to overhaul reporting rules for listed companies that included contentious diversity disclosures.