Texas SB2337 regulates proxy advisory services, requiring transparency and disclosure of conflicts of interest.

Texas SB2337 amends the Business Organizations Code to regulate proxy advisory services. Proxy advisors must provide services solely in the best financial interest of shareholders, based on quantitative, impartial standards. If services are based on non-financial factors, the advisor must disclose this prominently and warn recipients. Companies and shareholders can sue for violations. The changes apply to services rendered after the Act's effective date, which is September 1, 2025, unless the Act receives a two-thirds vote to take effect immediately.

Texas SB2337 regulates proxy advisory services, requiring transparency and disclosure of conflicts of interest.

Texas SB2337 amends the Business Organizations Code to regulate proxy advisory services. Proxy advisors must provide services solely in the best financial interest of shareholders, based on quantitative, impartial standards. If services are based on non-financial factors, the advisor must disclose this prominently and warn recipients. Companies and shareholders can sue for violations. The changes apply to services rendered after the Act's effective date, which is September 1, 2025, unless the Act receives a two-thirds vote to take effect immediately.