Enhancing Multi-Class Share Disclosures Act

Disclosure rules for multi-class companies

This bill would require the SEC to write rules for companies that use multi-class share structures. It would define multi-class share structure as two or more classes with different voting rights for director elections. The SEC would require companies to disclose, in the annual meeting proxy or another SEC filing, for each director, director nominee, named executive officer, and any owner with 5% or more combined voting power: (A) shares beneficially owned as a percent of all outstanding voting securities, and (B) voting power as a percent of total combined voting power. If enacted, investors would get clearer information on who controls a company. Companies would face extra filing and compliance costs to produce these disclosures.