Title: Enhancing Multi-Class Share Disclosures Act
Policy area: Finance and Financial Sector

Summary:
Enhancing Multi-Class Stock Disclosures Act
This bill amends the Securities Exchange Act of 1934 to require an issuer with a multi-class stock structure to make disclosures in its proxy or consent solicitation materials regarding the equity interest and voting power of specified persons.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6322 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 6322

To amend the Securities Exchange Act of 1934 to require issuers with a 
multi-class stock structure to make certain disclosures in any proxy or 
         consent solicitation material, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 10, 2018

  Mr. Meeks introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the Securities Exchange Act of 1934 to require issuers with a 
multi-class stock structure to make certain disclosures in any proxy or 
         consent solicitation material, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Enhancing Multi-Class Stock 
Disclosures Act''.

SEC. 2. REPORTING ON CERTAIN ISSUERS.

    Section 14 of the Securities Exchange Act of 1934 (15 U.S.C. 78n) 
is amended by adding at the end the following:
    ``(k) Disclosure for Issuers With Multi-Class Stock Structure.--
            ``(1) Disclosure.--The Commission shall, by rule, require 
        each issuer with a multi-class stock structure to disclose the 
        information described in paragraph (2) in any proxy or consent 
        solicitation material for an annual meeting of the shareholders 
        of the issuer.
            ``(2) Content.--A disclosure made under paragraph (1) shall 
        include, with respect to each person who is a director or 
        executive officer of the issuer or who, directly or indirectly, 
        holds 5 percent or more of the total combined voting power of 
        all classes of stock entitled to vote in the election of 
        directors--
                    ``(A) the amount of equity interest directly or 
                indirectly owned by such person, expressed as a 
                percentage of the total value of the outstanding equity 
                securities of the issuer; and
                    ``(B) the amount of voting power held by such 
                person, expressed as a percentage of the total combined 
                voting power of all classes of the securities of the 
                issuer entitled to vote in the election of directors.
            ``(3) Multi-class stock structure.--In this subsection, the 
        term `multi-class stock structure' means a capitalization 
        structure that contains 2 or more classes of stock that have 
        different amounts of voting power.''.
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