The DroneShield Ltd (ASX: DRO) share price is in focus after the company announced shareholding rules for management.
DroneShield provides equipment and technology to help protect people, vehicles, buildings and infrastructure from drones and other autonomous systems.
Shareholding rules for DroneShield shares
DroneShield announced to the ASX that, following an independent review by law firm Herbert Smith Freehills Kramer, the company has undertaken “immediate action”. The review was overseen by independent directors Simone Haslinger and Richard Joffee.
Governance changes
The business announced it will establish a mandatory minimum shareholding policy for all directors and members of senior management.
Each director will be expected to hold DroneShield shares equivalent to three years of their annual base fee from the time of the start of the policy.
The CEO will be expected to hold DroneShield shares equivalent to 200% of their annual salary within 12 months of the policy’s establishment.
DroneShield also said it would update its securities trading policy and continuous disclosure policy to align with “market practice and expectations of an ASX 200 company”.
The company is also looking for another independent non-executive director with ASX 200 experience within 12 months.
How leadership are paid
The company also revealed it’s undertaking a review of the director and executive remuneration framework – it’s being helped the PayIQ Executive Pay.
This review will “focus on aligning the company’s remuneration arrangements with the expectations for an ASX 200 company and the dynamic industry in which the company operates. It is intended that an update on this review will be provided in the company’s next remuneration report published in February 2026.”
Process improvements
DroneShield also told investors that it’s continuing work to enhance the verification processes undertaken regarding ASX announcements. These processes have been reviewed by the company’s independent auditors.
Early next year, an appropriately qualified external adviser will undertake a broader review of the company’s financial reporting processes and internal controls.
Final thoughts on the DroneShield share price
The market appears to like this move, with the DroneShield share price up more than 3% in early trading.
The business is still down more than 50% since the peak in October 2025, yet it’s up close to 60% from the low point in November 2025. It has seen massive volatility.
DroneShield continues to win contracts, which is a promising sign for the longer-term. But, I don’t know what a good price is for this business. How large is its addressable market? Could competitors invent better technology?
There are a number of uncertainties – I’d rather focus on other ASX growth shares with clearer growth potential.
