Enhancing Multi-Class Share Disclosures Act

Bill: 118-hr-2795
Sponsor: Rep. Meeks, Gregory W. [D-NY-5]
Introduced: 2023-04-24 in the House
Policy area: Finance and Financial Sector
Subjects: Consumer affairs
Corporate finance and management
Financial services and investments
Securities

Summary:
action_date: 2023-04-24
text: 

Enhancing Multi-Class Share Disclosures Act 

 
This bill requires issuers of securities with multi-class share structures to disclose certain information in any proxy solicitation or consent solicitation material. A multi-class share structure occurs when a company issues two or more classes of shares that have different voting rights. For example, a company may issue one class of shares with no or few voting rights for the public, and another class with more voting rights for company founders and executives. 
 
Under the bill, the issuer must disclose certain information about each director, director nominee, named executive officer, and each beneficial owner of securities with 5% or more of the total combined voting power of all classes of securities entitled to vote in the election of directors. Specifically, the issuer must disclose (1) the number of shares of all classes of securities entitled to vote in the election of directors beneficially owned by such person, and (2) the amount of voting power held by such person.
 

action_date: 2023-05-30
text: 

Enhancing Multi-Class Share Disclosures Act 

 
This bill requires issuers of securities with multi-class share structures to disclose certain information in any proxy solicitation or consent solicitation material. A multi-class share structure occurs when a company issues two or more classes of shares that have different voting rights. For example, a company may issue one class of shares with no or few voting rights for the public, and another class with more voting rights for company founders and executives. 
 
Under the bill, the issuer must disclose certain information about each director, director nominee, named executive officer, and each beneficial owner of securities with 5% or more of the total combined voting power of all classes of securities entitled to vote in the election of directors. Specifically, the issuer must disclose (1) the number of shares of all classes of securities entitled to vote in the election of directors beneficially owned by such person, and (2) the amount of voting power held by such person.
 


Legislative actions:
action_date: 2023-05-31
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
action_date: 2023-05-30
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2023-05-30
text: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 347 - 30 (Roll no. 239). (text: CR H2653)
action_date: 2023-05-30
text: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 347 - 30 (Roll no. 239). (text: CR H2653)
action_date: 2023-05-30
text: Considered as unfinished business. (consideration: CR H2662-2663)
action_date: 2023-05-30
text: At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
action_date: 2023-05-30
text: DEBATE - The House proceeded with forty minutes of debate on H.R. 2795.
action_date: 2023-05-30
text: Considered under suspension of the rules. (consideration: CR H2653-2654)
action_date: 2023-05-30
text: Mrs. Wagner moved to suspend the rules and pass the bill, as amended.
action_date: 2023-05-30
text: Placed on the Union Calendar, Calendar No. 58.
action_date: 2023-05-30
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 118-79.
action_date: 2023-05-30
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 118-79.
action_date: 2023-04-26
text: Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 48 - 1.
action_date: 2023-04-26
text: Committee Consideration and Mark-up Session Held.
action_date: 2023-04-24
text: Referred to the House Committee on Financial Services.
action_date: 2023-04-24
text: Introduced in House
action_date: 2023-04-24
text: Introduced in House