Recently, the Texas Legislature passed Senate Bill 2337 (SB 2337) in an effort to regulate proxy advisors – including ISS and Glass Lewis – when they provide proxy voting recommendations for those companies that are either:
- Headquartered in Texas
- Incorporated in Texas
- Redomesticating to Texas
If signed by the Texas Governor, the law becomes effective on September 1st like other recent business-friendly laws enacted in that state (like this one relating to shareholder proposals).
This is clearly an unwelcome development for proxy advisors. In this blog, Glass Lewis includes the text of the letter that they sent to Members of the Texas House Committee, expressing significant concern with the bill and urging that it not be scheduled for floor consideration…
[View source.]
