Texas Business Organizations Code

§ 6A.101 — DISCLOSURE OF NONFINANCIAL PROXY VOTING SERVICES TO PREVENT FRAUD OR DECEIT

BO § 6A.101Title 1. GENERAL PROVISIONS · Ch. 6A. PROXY ADVISORY SERVICES · Art. B. DISCLOSURE REQUIREMENTS FOR PROXY ADVISORS

Statute text

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(a)For purposes of this section, a proxy advisory service is not provided solely in the financial interest of the shareholders of a company if the service:

(1)is wholly or partly based on, or otherwise takes into account, one or more nonfinancial factors, including a commitment, initiative, policy, target, or subjective or value-based standard based on:

(A)an environmental, social, or governance (ESG) goal, factor, or investment principle;

(B)diversity, equity, or inclusion (DEI), including any attempt to provide preferential treatment based on characteristics protected under Section 21.051, Labor Code;

(C)a social credit or sustainability factor or score; or

(D)membership in or commitment to an organization or group that wholly or partly bases its evaluation or assessment of a company's value over any period on nonfinancial factors;

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Legislative history

Added by Acts 2025, 89th Leg., R.S., Ch. 1153 (S.B. 2337), Sec. 2, eff. September 1, 2025.