Bill > HB830

This bill establishes the "Proxy Advisor Transparency Act" in Louisiana, which aims to regulate proxy advisors, defined as individuals or entities providing advice or recommendations to shareholders on how to vote on company proposals for compensation. The act requires proxy advisors to disclose whether their recommendations against company management on proposals are based on a written financial analysis that examines short-term and long-term financial benefits and costs, concludes what action best affects shareholder value, and explains their methods and personnel. If a written financial analysis is conducted, the proxy advisor must disclose that it was performed and make the analysis available upon request to shareholders and the company's board of directors. Violations of this act will be treated as unfair and deceptive trade practices, allowing for enforcement by the Attorney General and private lawsuits for declaratory or injunctive relief by aggrieved parties, including recipients of proxy advisory services, the companies being advised, and their shareholders. The act will take effect on January 1, 2027.

Budget and Finance, Business and Industry

https://www.legis.la.gov/legis/BillInfo.aspx?s=26rs&b=HB830&sbi=y