Duffy Advances Corporate Governance Reform Bill

Press Release

Congressman Sean Duffy's (WI-07) bill, the Corporate Governance Reform and Transparency Act (H.R. 5311), which he introduced with Congressman John Carney (DE-AL), advanced out of committee with bipartisan support markup. The Corporate Governance Reform and Transparency Act will protect investors and improve corporate governance of publicly-held companies by increasing transparency on and oversight of proxy advisory firms, which advise shareholders on key corporate governance decisions. Specifically, the bill would require requiring proxy advisory firms to:

* register with the Securities and Exchanges Commission (SEC),

* disclose potential conflicts of interest,

* make publicly available their methodologies for formulating proxy recommendations and analyses.

The vote advanced out of Financial Services Committee markup in a bipartisan fashion with a vote of 41-18.

Below is an excerpt of Congressman Duffy's opening remarks:

"My bill, the Corporate Governance Reform and Transparency Act, which I introduced with my good friend from Delaware, Mr. Carney, will foster accountability, transparency, responsiveness, and competition in the proxy advisory firm industry- thereby improving corporate governance and protecting investors. The role of proxy advisory firms in the US economy and in shaping corporate governance is of significant national importance."

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