Vote Smart's Synopsis:

Vote to pass a bill that requires issuers of securities with multi-class share structures to disclose certain information in any proxy solicitation or consent solicitation material.

Highlights:

• Requires issuers of securities with multi-class share structures to disclose certain information in any proxy solicitation or consent solicitation material (Sec. 2).

• Specifies that 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 (Sec. 2).

• Specifies that 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 (Sec. 2).

• Requires that the issuer must disclose (Sec. 2):

• The number of shares of all classes of securities entitled to vote in the election of directors beneficially owned by such person; and

• The amount of voting power held by said individual.

Full Bill Text

Full Bill Text