- Jeb HensarlingRepresentative
- Luke MesserRepresentative
- Dennis RossRepresentative
- Mick MulvaneyRepresentative
- Stephen FincherRepresentative
- Steve StiversRepresentative
- Bill HuizengaRepresentative
- Lynn WestmorelandRepresentative
- Randy NeugebauerRepresentative
- Frank LucasRepresentative
- Robert HurtRepresentative
- Scott GarrettRepresentative
- Ruben HinojosaRepresentative
- Stephen LynchRepresentative
- Gwen MooreRepresentative
- Ed PerlmutterRepresentative
- David ScottRepresentative
- Gary PetersSenator
- Bill FosterRepresentative
- John CarneyState Representative
- Terri SewellRepresentative
- Patrick MurphyRepresentative
Protect Shareholders. Strike the Financial Choice Act 2.0.
Shareholder democracy is being profoundly threatened by Section 844 of the Financial CHOICE Act 2.0.
This new legislation, which was heard by the Congressional Financial Services Committee on April 26 and then passed by the House on June 8, contains a provision that would fundamentally impair investors' rights to file shareholder resolutions. It is now scheduled to be voted on in the Senate. The new rule would permit only a tiny fraction of the globe’s wealthiest investors (those who own more than 1% or more of a company’s stock) to file shareholder proposals. For example, raising the ownership requirement to 1% would leave only 11 investors with enough shares ($3 billion) necessary to file shareholder proposals at Wells Fargo.
All other shareholders would be blocked from using their shareholder rights to address equity, justice, sustainability, climate, risk, and good governance issues.
Sign our petition and make your voice heard. We will be sending signatures, as well as the letter linked below, to the Senate. Let’s work together to defeat this destabilizing legislation that will profoundly affect consumers, investors, and the economy at large.
- State Representative
I am writing today to urge you to defend the rights of investors by opposing the Financial Choice Act 2.0, particularly Section 844, which eviscerates the Securities and Exchange Commission’s (SEC) shareholder resolution rule.
I am a shareholder who values the right to raise issues of risk, good governance, and impact with companies; and to receive information on companies’ proxy statements about issues raised by other shareholders. My ability to have a voice with the companies I own, either through filing resolutions or by voting on them, is a fundamental shareholder right that I value highly.
The vast majority of shareholder resolutions are not binding on management, regardless of vote totals. Resolutions are a channel of communication that allows shareholders to express concerns and raise issues with management. It is a process that is tightly managed and regulated by the SEC and has worked well for nearly 70 years.
If Congress guts these fundamental and democratic shareholder rights, neither companies nor shareholders will benefit. The proposed Section 844 requirements would preclude all but the richest shareowners from participation. For example, for Wells Fargo Bank only 11 investors in total would meet the proposed 1% holding requirement; none of these 11 investors have ever filed a resolution.
If Congress alters investors’ already-limited rights to engage with the companies whose stock they own, confidence in corporation accountability and the stability of our rights as shareholders will be undermined, to the detriment of all. I urge you to oppose any attempt to legislatively alter the SEC’s shareholder resolution rule (Rule 14a-8).
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