Bill > H4985

This bill, titled the "Proxy Advisor Transparency Act," aims to increase transparency for proxy advisors, which are entities that provide recommendations to shareholders on how to vote on company matters like director elections or executive compensation. Specifically, if a proxy advisor recommends voting against company management's position on a company proposal or shareholder proposal, and they do not base this recommendation on a "written financial analysis" (a detailed document analyzing the financial benefits and costs to the company and concluding how to best affect shareholder value), they must clearly disclose this lack of analysis to shareholders and publicly on their website. If they *do* base their recommendation on a written financial analysis, they must disclose that the analysis was used and make it available upon request to shareholders and the company involved. Violations of this act are considered deceptive trade practices, giving the Attorney General investigatory and enforcement powers, and also allow any person harmed by a violation to sue the proxy advisor for relief.

Business and Industry

https://www.scstatehouse.gov/billsearch.php?billnumbers=4985&session=126&summary=B