On April 26th new legislation, entitled the Financial Choice Act 2.0, was heard by the Congressional Financial Services Committee to permit only a tiny fraction of wealthiest investors to file shareholder resolutions. The legislation was advanced to the House of Representatives on May 4th. If passed, this law would require that shareholder resolutions only be submitted by investors who own 1% or more of a company’s stock.
Shareholder resolutions are proposals submitted by shareholders of a public company for a vote in the company’s annual meeting. In the United States, the submission and handling of resolutions is regulated by the Securities Exchange Commission (SEC).
AS YOU SOW, invites constituents to protect shareholder rights by telling your representatives to vote against the Financial Choice Act.
For more on the Congressional move to restrict shareholder rights, see: AS YOU SOW: SHAREHOLDER DEMOCRACY IS BEING PROFOUNDLY THREATENED BY SECTION 844 OF THE PROPOSED FINANCIAL CHOICE ACT 2.0.