With the increased concentration of share ownership by institutional investors over the past several decades, the influence of proxy advisory firms on shareholder votes has grown dramatically, all while the proxy regulatory process has become more complex. Against this background, the US Securities and Exchange Commission issued two interpretive releases on August 21, 2019. This Legal Update focuses on the release that provided guidance regarding the applicability of certain rules promulgated under Section 14 of the Securities Exchange Act of 1934 to proxy voting advice and notes practical considerations for parties involved in the proxy voting process.
