H.R. 52
Stop Woke Investing Act
In Plain Language
This bill would require the SEC to change the rules so that shareholder proposals can only appear on company proxy statements if they would significantly affect the company's finances. It also caps how many shareholder proposals a company has to include, depending on company size, and blocks board members from submitting shareholder proposals. The changes would make it harder for shareholders to raise social or environmental concerns that don't directly impact profits.
Official Congressional Research Service summary
Stop Woke Investing ActThis bill requires the Securities and Exchange Commission (SEC) to amend regulations to limit the inclusion of shareholder proposals in proxy statements. A proxy statement is provided to shareholders prior to a public company holding a shareholder meeting and contains information relevant to a shareholder vote. Under current SEC rules, certain qualifying shareholder proposals must be included on a company's proxy statement, including proposals that raise significant social policy issues.Under the bill, a shareholder proposal must have a material effect on the financial performance of the company to be included in a proxy statement. The bill also establishes a cap on the number of shareholder proposals required to be included in a shareholder meeting, depending on the size and type of the company. In addition, a proposal submitted by a member of the board of directors is prohibited from inclusion as a shareholder proposal.
Sponsor
Cosponsors
Latest action
Referred to the House Committee on Financial Services.
Jan 3, 2025
Official source
Action history
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