Block (ASX:XYZ) shareholder the New York State Common Retirement Fund has filed a proposal to establish a dedicated board-level technology committee, arguing that the company's current technology oversight is "woefully inadequate," according to a Friday filing with the Australian bourse.

The retirement fund said a specialized technology committee would help relieve an overwhelmed three-member audit and risk committee that, among other duties, is tasked with direct oversight of the audit and risk functions of Square Financial Services, an industrial bank owned by Block.

This "creates a substantial, recurring compliance burden entirely separate from the committee's oversight of the parent company's technology risk and enterprise cybersecurity," the shareholder said.

Block's lack of a dedicated technology committee has exposed shareholders "to recurring compliance and cybersecurity risks," the retirement fund said, adding that the board has existing capacity, as four directors currently don't serve on any committees.

The proposal will be put to a vote at an annual meeting scheduled for June 16.

Block did not immediately respond to a request for comment from MT Newswires.