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Primary Sponsor

Last Action

Passed 3rd Reading2026-06-24

Vote Breakdown

Plain Language Summary

This bill requires proxy advisory services operating in North Carolina to disclose whether their voting recommendations are based on written financial analyses. If recommendations against company management are not based on financial analysis, proxy advisors must clearly inform shareholders and company boards; if they are based on financial analysis, they must make the analysis available upon request. Violations are treated as unfair and deceptive trade practices.

Arguments in Favor

• •Supporters argue this bill protects investors by requiring transparency about whether proxy advisor recommendations are grounded in financial analysis or based on other factors like ESG, DEI, or social considerations.
• •They contend that shareholders deserve to know if recommendations claiming to maximize investment value are actually based on thorough financial research, and that company directors need this information to provide shareholders with responsive context about proposals.

Arguments Against

• •Opponents may argue this bill creates unnecessary regulatory burdens on proxy advisory firms and could restrict their ability to consider non-financial factors that some investors value, such as environmental sustainability or governance quality.
• •They may also contend that the definition of 'written financial analysis' is overly narrow, that existing federal regulations already provide adequate oversight, and that the bill effectively discourages consideration of ESG and social factors in investment decisions.