Over-regulation in the proxy advisory market will hurt Texas businesses.
Tell your lawmakers to vote no!
The Texas legislature is considering legislation to create new burdensome regulations for state proxy advisory businesses and organizations participating in the shareholder proposal process. Specifically, it would require onerous information from investors when the state disagrees with what a shareholder deems a financial risk.
Specifically, the legislation regulates the proxy advisory market by requiring onerous and burdensome disclosures. This includes receiving written permission from the investor if the state has deemed a proxy advisors' recommendation is “not based solely in the best financial interest of the shareholders of a company.” This is required even if it is not factually accurate.
Investors consider a wide range of material financial issues, such as extreme weather, labor shortages, and inflation when they engage companies in their portfolios through direct dialogue or the proxy voting process. If left up to the state to decide if these issues are financial, an entire industry of the Texas economy would be at risk.
Unnecessary burdens on proxy advisory businesses and organizations will hurt the Texas economy and cost jobs.
Tell your representative to vote no on HB 4079 and SB 2337!