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US HR4645

US HR4645
Empowering Shareholders Act of 2023


summary

Introduced
07/14/2023
In Committee
07/14/2023
Crossed Over
Passed
Dead
01/03/2025

Introduced Session

118th Congress

Bill Summary

A BILL To amend the Investment Advisers Act of 1940 with respect to proxy voting of passively managed funds, and for other purposes.

AI Summary

This bill, the Empowering Shareholders Act of 2023, amends the Investment Advisers Act of 1940 to require investment advisers that hold authority to vote a proxy solicited by a public company (issuer) on behalf of a passively managed investment fund to either (1) vote according to the instructions of the beneficial owner of the shares, (2) vote according to the issuer's instructions, or (3) abstain from voting. The bill provides a safe harbor for investment advisers who follow these requirements, shielding them from liability. Key terms include "passively managed fund" (an index fund or fund that tracks an index) and "routine matter" (proposals related to director elections, executive compensation, auditor selection, etc.). The amendments would take effect two years after the bill's enactment.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Referred to the House Committee on Financial Services. (on 07/14/2023)

bill text


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