Washington, DC—U.S. Representative John Rose (TN-06) introduced H.R. 4657, a bill that would protect retail investors and retirement savings from activist shareholders and socially-directed investment funds abusing the shareholder process to advance their activist and oftentimes progressive political agendas.
Currently, under the SEC’s recent Staff Legal Bulletin 14-L, significant social policy issues, like climate-related proposals, no longer need to have a nexus between an individual company and the policy to be included in a proxy statement. This makes it easier for activists to force public companies to take positions on social and political issues. Under Chair Gensler, the SEC has tasked unelected bureaucrats with making subjective judgments about whether a company should include these proposals on its proxy statement.
U.S. Rep. John Rose released the following statement:
“The SEC is wrong every step of the way by issuing this bulletin,” said Rep. Rose. “If the American people want companies to take certain actions or political positions, they will exercise those desires through their pocketbooks and consumer choices—not the heavy hand of government. I’m proud to introduce this bill which will get the unelected bureaucrats at the SEC—especially Chair Gensler—out of the business of legislating moral and social policy.”
Read the full text of the bill here.
This is a companion discussion topic for the original entry at https://johnrose.house.gov/media/press-releases/rep-rose-introduces-bill-protect-retail-investors-and-retirement-savings-woke