Description: Challenge to the Securities and Exchange Commission’s final rule on proxy vote reporting requirements for registered management investment companies.
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Texas v. Securities & Exchange Commission
Case Documents:
Filing Date Type File Action Taken Summary 02/22/2023 Petition for Review Download Petition for review filed. Four States Challenged SEC Proxy Vote Rule for Investment Managers. Texas, Louisiana, Utah, and West Virginia filed a petition for review in the Fifth Circuit Court of Appeals challenging the Securities and Exchange Commission’s final rule on proxy vote reporting requirements for registered management investment companies. In a press release regarding the petition for review, the Texas Attorney General said the new rule amended the form for reporting details of proxy votes “by expanding the number of voting categories that address left-wing priorities.” The Attorney General characterized the “real reason behind the new rule” as to “force … companies to either increase the number of votes taken that would further the radical political agenda of the Biden Administration or face enhanced public scrutiny.” The Attorney General also said the new rule would “pressure … funds to potentially violate their fiduciary duties by taking actions that may not be in the best financial interests of their investors.”