Bill > SB2676

This bill, known as the Proxy Advisor Transparency Act, aims to increase transparency from proxy advisors, which are entities that provide recommendations to shareholders on how to vote on company matters, especially when investors lack the resources to research every issue themselves. The act defines key terms like "proxy advisor" and "proxy advisory service" and mandates that if a proxy advisor recommends voting against company management without basing that recommendation on a written financial analysis that details expected financial benefits and costs to the company and concludes how the vote would affect shareholder value, they must clearly disclose this lack of financial analysis to their clients and on their website. If a written financial analysis *is* performed, the proxy advisor must disclose that the analysis was done, make it available upon request, and provide it to the company's board of directors. Violations of this act are considered deceptive trade practices, allowing for enforcement by the Attorney General and private lawsuits by aggrieved parties, including recipients of the services, the companies involved, and their shareholders. The bill also amends existing law to explicitly include violations of this new act as a prohibited deceptive trade practice.

Business and Industry

https://billstatus.ls.state.ms.us/2026/pdf/history/SB/SB2676.xml