Lawmakers hear competing views on proxy‑advisor disclosure bill
SB 375 would require proxy advisors to disclose whether recommendations against company management are based on a written financial analysis and make that analysis available to clients and boards. Proponents said it is a limited consumer‑protection measure; nonprofits and advocacy groups warned the bill is vague, could chill stewardship work and may face First Amendment challenges.
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The Judiciary committee heard testimony on Senate Bill 375, the Proxy Advisor Transparency Act, which would require proxy advisors to disclose when a recommendation against company management is not based on a written financial analysis and to provide disclosures to clients and boards; the attorney general would be authorized to investigate and enforce through the consumer‑protection law.
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