Texas Legislature Passes Law to Rein in Proxy Advisors

Broc RomanekUpdated on June 20, 2025June 20, 20251 min read

Recently, the Texas Legislature passed Senate Bill 2337 (SB 2337) in an effort to regulate proxy advisors – including ISS and Glass Lewis – when they provide proxy voting recommendations for those companies that are either:

Headquartered in Texas
Incorporated in Texas
Redomesticating to Texas

If signed by the Texas Governor, the law becomes effective on September 1^st like other recent business-friendly laws enacted in that state (like this one relating to shareholder proposals).

This is clearly an unwelcome development for proxy advisors. In this blog, Glass Lewis includes the text of the letter that they sent to Members of the Texas House Committee, expressing significant concern with the bill and urging that it not be scheduled for floor consideration…

Authored by

Broc Romanek

Cooley

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