Financial CHOICE Act Imposes Sweeping Shareholder Proposal Reforms

The Harvard Law School Forum on Corporate Governance and Financial Regulation 2017-04-29

Posted by Ning Chiu, Davis Polk & Wardwell LLP, on Thursday, April 27, 2017
Editor's Note: Ning Chiu is counsel at Davis Polk & Wardwell LLP. This post is based on a Davis Polk publication by Ms. Chiu.

The modified version of the legislation, CHOICE Act 2.0, released by House Financial Services Committee Chairman Jeb Hensarling (R-TX), is mostly known for proposing major financial regulatory reforms. Tucked into the lengthy bill, however, are several significant changes that would completely overhaul the shareholder proposal process. Some are similar to proposals by the Business Roundtable, which we previously discussed here.