Bill > SB183

This bill requires proxy advisory services, which are entities that provide advice or recommendations on how companies' shareholders should vote on company or shareholder proposals, to disclose certain information to both shareholders and the companies involved. Specifically, if a proxy advisor's advice is not solely focused on the financial interests of shareholders (meaning it considers non-financial interests like environmental or social goals that don't directly impact financial returns), or if it provides conflicting advice on the same proposal to different clients, it must notify shareholders and the company. This notification must explain that the advice may not be solely in the shareholders' financial interest and detail the basis for the advice, including any non-financial considerations. If the advice is materially different for different clients, the proxy advisor must also inform the Attorney General and provide the advice that *is* solely in the shareholders' interest, supported by an economic analysis. Failure to comply with these disclosure and notification requirements is considered an unfair, false, misleading, or deceptive trade practice, allowing for civil actions and remedies similar to those already in place for consumer protection. These provisions apply to proxy advisory services provided after the bill becomes law.

Business and Industry

https://apps.legislature.ky.gov/record/26RS/sb183.html