H.R.3357 — Enhancing Multi-Class Share Disclosures Act
House Roll Call
H.R.3357
| Bill | H.R.3357 — Enhancing Multi-Class Share Disclosures Act |
|---|---|
| Vote question | On Motion to Suspend the Rules and Pass, as Amended |
| Vote type | 2/3 Yea-And-Nay |
| Result | Passed |
| Totals | Yea 381 / Nay 31 / Present 0 / Not Voting 18 |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| R | 176 | 31 | 0 | 11 |
| D | 205 | 0 | 0 | 7 |
| I | 0 | 0 | 0 | 0 |
Research Brief
On Motion to Suspend the Rules and Pass, as Amended
Bill Analysis
Summary of HR 3357 - Enhancing Multi-Class Share Disclosures Act
The Enhancing Multi-Class Share Disclosures Act (HR 3357) aims to improve transparency in the financial markets by mandating enhanced disclosures for companies that issue multi-class share structures. This legislation responds to concerns regarding the governance implications of such share structures, which can lead to disproportionate voting power among shareholders.
Key Provisions: The bill requires publicly traded companies with multi-class share structures to provide detailed disclosures about the rights associated with each class of shares. This includes information on voting rights, dividend policies, and any other material differences between share classes. The intent is to ensure that investors have a clear understanding of the implications of their investments, particularly in companies where control may be concentrated among a small group of shareholders.
Funding and Authorities: HR 3357 does not allocate specific funding but empowers the Securities and Exchange Commission (SEC) to implement the required disclosure rules. The SEC will be responsible for developing the necessary regulations to enforce these provisions, thereby enhancing its oversight capabilities over public companies.
Affected Programs and Agencies: The primary agency impacted by this legislation is the SEC, which will need to revise its rules and possibly develop new reporting forms for companies. The bill also indirectly affects public companies that utilize multi-class share structures, as they will need to comply with the new disclosure requirements.
Beneficiaries and Regulatory Impact: Investors, particularly retail investors, will benefit from increased transparency, enabling them to make more informed decisions. The bill aims to level the playing field by ensuring that all shareholders have access to critical information regarding their investments. Additionally, corporate governance advocates may find the enhanced disclosures beneficial for promoting accountability among companies with complex ownership structures.
Timeline: As of the latest action, HR 3357 has been received in the Senate, read twice, and referred to the Committee on Banking, Housing, and Urban Affairs for further consideration. The timeline for further action remains contingent on the committee’s review and subsequent legislative processes.
Yea (381)
K
Ken Calvert
J
Jason Crow
L
Lloyd Doggett
S
Scott Franklin
J
John Garamendi
J
John Mannion
L
Lucy McBath
L
Lisa McClain
J
John Rutherford
D
David Schweikert
P
Pete Sessions
R
Rashida Tlaib
N
Nydia Velázquez
D
Debbie Wasserman Schultz
Nay (31)
Not Voting (18)
E
Eric Swalwell
