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How Companies Can Prepare For SEC Proxy Advisor Reform - Corporate/Commercial Law


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The SEC s long-awaited final rules governing voting advice provided by
proxy advisory firms such as Institutional Shareholders Service
(ISS) and Glass Lewis (the final rules ) became
effective on November 2, 2020. The final rules confirm that proxy
advice constitutes a solicitation under the federal proxy rules,
and provide proxy advisory firms with a conditioned exemption from
the filing and information requirements that would normally apply
to such solicitations. To secure the exemption, proxy advisory
firms must (i) provide disclosure of conflicts of interest and (ii)
adopt policies and procedures to inform public companies of the ....

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