Congressman Andy Biggs (R-AZ) introduced the Stop Woke Investing Act, legislation promoting corporate America’s return to the free exchange of ideas. The Securities and Exchange Commission (SEC) has broad power to dictate what shareholder proposals a public company must consider. Under the Harris-Biden regime, the SEC has severely limited the ability of companies to exclude radical ESG proposals, like requiring companies to conduct “racial equity audits” or to set mandates to reduce greenhouse gas emissions, that are detrimental to a company’s financial responsibilities to their shareholders.
Actions from this Administration have forced companies to include controversial policies that are of little to no value to their business operations and accomplish nothing other than serving a woke social agenda. Kamala Harris and Joe Biden have weaponized every aspect of the federal government to punish those who refuse to cower in the face of their radical priorities.
The legislation would:
- Allow businesses to reject frivolous shareholder proposals unrelated to the financial success of the company.
- Limit the amount of proposals on which a company is permitted to vote, encouraging the prioritization of proposals that advance shareholder interests.
“Woke activism shouldn’t be placed ahead of the profitability of a public company,” said Congressman Biggs.
“Businesses should not be enslaved to radical ESG priorities that pull attention away from their fiduciary responsibilities. Focusing on woke policies only serves to harm businesses, investors, and the American economy. Congress must continue fighting the weaponization of the Harris-Biden regime and its push to radicalize Americans’ day-to-day lives.
“I’m thankful for the support of my colleagues and for Senator Eric Schmitt’s (R-MO) leadership on this issue in the Senate.”
“Over the years activist investors have increasingly proposed shareholder resolutions to compel American companies to consider ESG-related priorities that have nothing to do with financial performance. The focus on ancillary environmental and social factors is putting businesses’ management at odds with their fiduciary duty to maximize financial returns to shareholders,” said Grover Norquist, President of Americans for Tax Reform.
“That is why I am proud to support Rep. Biggs’s Stop Woke Investing Act, which would limit the amount of extraneous shareholder resolutions that can be included on a company’s proxy ballot. The shareholder resolutions submitted must also have a material effect on the financial performance of the company. This bill preserves the true meaning of fiduciary duty and ensures American companies can continue to focus on job creation, financial performance, and economic growth.”
Cosponsors of the Stop Woke Investing Act are: Rep. Andy Ogles (R-TN), Rep. Eli Crane (R-AZ), and Rep. Eric Burlison (R-MO).
The legislation may be read here.
Breitbart covered the legislation here.
