Feb. 24, 2023
February 24, 2023
It appears that the main benefits would be to improve the transparency and efficiency of the proxy voting process, and to enhance the ability of shareholders to engage with companies on important issues.
The proposed rules would require increased disclosure by proxy advisory firms, providing investors with more information to evaluate the advice they receive. Additionally, the rules would enhance the ability of shareholders to submit proposals and vote on issues at company meetings, ensuring that their voices are heard and allowing for greater accountability of corporate management.
The proposed changes would also provide additional flexibility for companies in how they communicate with shareholders and conduct virtual meetings, which could lead to greater efficiency and cost savings.
Overall, the proposed rule changes appear to be aimed at improving the functioning of the proxy voting process and increasing the ability of shareholders to hold companies accountable. These changes could ultimately benefit both investors and companies by promoting greater transparency, accountability, and engagement.