(Reuters) – The US Securities and Exchange Commission will vote on July 13 to adopt rules that increase the disclosure of proxy voting advice, the agency said on Wednesday.
The rule, which the Wall Street regulator voted to propose in November, is also expected to undo a Trump-era rule that allows companies a first look at proposals from proxy advisory firms, which recommend investors how to vote in corporate elections.
The agency will also propose a rule that would change certain “substantive grounds” for the exclusion of shareholder proposals, the agency said in a statement.
In November, the SEC unveiled a measure that requires improved disclosure and voting opportunities in all corporate director elections. Among other conditions, the agency proposed repealing a Trump-era rule that required proxy advisers to give companies subject to their advice a first look at reports.
While industry groups are likely to question the legitimacy of the regulator̵7;s proposed changes, investor advocates are expected to cheer on the move, which according to the SEC responds to concerns about the ability of proxy advisers to deliver independent voting advice to their clients in a timely manner.
Separately, the agency’s new proposal on shareholders’ voting rights follows a staff bulletin in November that tried to make it more difficult for companies to keep shareholder proposals on issues such as the diversity of the workforce or the climate from voting at annual meetings.