Enhancing Multi-Class Share Disclosures Act

Floor Speech

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Mr. MEEKS. Mr. Speaker, I rise today in support of my bill, H.R. 3357, the Enhancing Multi-Class Share Disclosures Act.

Mr. Speaker, I thank Chairman Hill and Ranking Member Waters for their leadership and efforts to bring my bill to the floor today.

Publicly traded companies are critical to this country's economic dynamism and wealth creation. Their shareholders, including everyday American families, believe in the potential of these companies and demonstrate this faith by investing in their equities. This flood of new capital allows companies to do research and development, hire Americans, and innovate for the greater good.

My legislation strengthens our capital markets by requiring more transparency around multiclass shareholder companies.

For annual shareholder meetings, companies will have to disclose the true distribution of voting power of insiders, like directors or executives, who hold more voting rights than their ownership share would suggest.

An imbalanced power structure could limit other investors' abilities to direct strategy or hold boards accountable. Basically, this bill gives Main Street investors the complete and full picture and the necessary information to make smart and informed decisions.

Let me be clear: I very much understand the benefit of multiclass share structures and think they have a place in corporate governance. Major companies from outside of the United States have chosen to list in New York City precisely because we have more flexible multiclass structures. Yet, our advantage over other financial hubs, like Hong Kong and Shanghai, is not just one set of regulations. It is the transparency and openness of our capital markets, and transparency strengthens markets.

By doubling down on our strengths, this bill will further cement our competitive lead and aid investors along the way.

Mr. Speaker, I call on my colleagues to support my legislation.

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