The move stems from National Competition Council criticism earlier this year after APA sought to remove its prime asset, the Moomba-to-Sydney pipeline, from the National Gas Code due to a perceived dominance in the company by AGL, from which APA was spun off three years ago.
Currently APA unitholders do not have any vote in the election of the directors of Australian Pipeline Limited.
The proposed changes will result in unitholders effectively electing the directors of Australian Pipeline Limited (other than the two directors nominated by Australian Gas Light Company and the one director nominated by Petronas).
AGL has agreed to procure the necessary changes to APL's Constitution.
These changes are intended to bring the governance arrangements for Australian Pipeline Limited and APA up to date with best practice for managed investment schemes and to enhance the rights of unitholders.
