Goodman Group (ASX:GMG), the S&P/ASX 200 industrial property and data centre developer, will face a pointed challenge at its Annual General Meeting in November. Securityholders have requisitioned two resolutions that would, if passed, ask the board to explain how it identifies and manages the risks of building data centres near homes, schools and environmentally sensitive land.

The reported that residents living near a proposed Goodman data centre in Sydney were behind the move. The challenge lands at a time when data centres have become the centrepiece of Goodman's growth strategy, making community acceptance of these projects increasingly important to the group.

What the resolutions ask for

Goodman disclosed the requisitioned resolutions to the ASX on 21 September 2026, ahead of its AGM on 19 November 2026. the requisitioning securityholders held about 0.0017 per cent of Goodman securities on issue. Under the Corporations Act, members can put resolutions to a meeting if they hold at least 5 per cent of votes or if at least 100 members entitled to vote support the request.

The first resolution is a special resolution to amend Goodman Limited's constitution by adding a new article that would allow members, by ordinary resolution at a general meeting, to express opinions or make requests about how directors exercise their powers. As a special resolution, it requires 75 per cent support. Any resolution passed under such a provision would be advisory and non-binding.

The second resolution depends on the first being approved. It asks the board to disclose its framework for identifying and managing the risks associated with data centre developments located near residential areas, schools and environmentally sensitive lands. It also asks whether external expertise contributed to that framework, and whether Goodman would report on the matter regularly in future annual and sustainability reports, with a response requested by 30 September 2027.

The Lane Cove connection

Why data centres matter so much to Goodman

The stakes are high because data centres now dominate Goodman's development pipeline. In its FY26 result, released on 19 August 2026, the group reported operating profit of $2.675 billion, up 15.7 per cent, and operating Earnings per security of 129.9 cents, up 10.1 per cent. Development work in progress reached $19.7 billion across 50 projects, with data centres making up 78 per cent of that total.

That scale explains why governance of data centre risks has become a live issue. Large facilities require substantial power and, in many cases, water for cooling, and they can bring construction traffic, noise and visual changes to surrounding neighbourhoods. As Goodman shifts more of its Capital towards this sector, the way it handles those local impacts could affect approval timelines and its social licence.

What the vote could mean

On the numbers alone, the resolutions face a steep climb. Special resolutions to amend a company constitution to allow advisory votes have generally struggled to reach the 75 per cent threshold at large Australian companies, because many institutional investors are cautious about changing constitutional arrangements. If the first resolution fails, the second, which is expressly contingent on it, would fall away under the terms described in Goodman's announcement. And even if both were passed, the outcome would be advisory rather than binding on the board. The board's recommendation, due in October, is likely to be an important signal for proxy advisers and institutional investors weighing how to vote.