05.10.24

SEC Proxy Vote Reporting Rules Survive Court Challenge

by: Matthew Bultman

A federal appeals court left intact U.S. Securities and Exchange Commission (SEC) rules that boost disclosures about fund votes on ESG proposals at company annual meetings. Texas and other Republican-led states that brought the challenge lack the legal standing to seek review of the rules, the U.S. Court of Appeals for the Fifth Circuit said. At the core of the challenge was a requirement that funds also categorize each matter they voted on by type. The SEC says the categories are useful to investors, making it easier for them to analyze and compare funds’ actions. The states argued the SEC overstepped its authority and didn’t justify the rules’ costs.

Read the full article on Bloomberg Law