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Empowering Shareholders: New Proxy Voting Rules for Passively Managed Funds

This Act amends the rules for proxy voting by investment advisers managing passively managed funds. If you own shares in a passive fund (like an index ETF), the investment adviser must vote according to your instructions, the issuer's instructions, or abstain from voting on non-routine matters. This change grants individual investors greater control over corporate decisions made by the companies held within their passive investment funds.
Key points
Change in Voting Rules: Investment advisers managing passive funds must vote according to the beneficial owner's instructions, the issuer's instructions, or abstain from voting.
Increased Investor Control: This applies to matters that are not considered routine (e.g., mergers, asset sales, but not board elections or management compensation).
Safe Harbor for Advisers: Investment advisers are protected from legal liability if they do not solicit voting instructions, vote according to the issuer's instructions, or abstain from voting on non-routine matters.
Definition of Passive Fund: The Act defines a passively managed fund as one designed to track an index or one that discloses itself as a passive index fund.
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Expired
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Additional Information
Print number: 118_HR_4645
Sponsor: Rep. Huizenga, Bill [R-MI-4]
Process start date: 2023-07-14
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Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Empowering Shareholders Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_4645.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-07-14.

What are the main provisions?

Key points include:

  • Change in Voting Rules: Investment advisers managing passive funds must vote according to the beneficial owner's instructions, the issuer's instructions, or abstain from voting.
  • Increased Investor Control: This applies to matters that are not considered routine (e.g., mergers, asset sales, but not board elections or management compensation).
  • Safe Harbor for Advisers: Investment advisers are protected from legal liability if they do not solicit voting instructions, vote according to the issuer's instructions, or abstain from voting on non-routine matters.
  • Definition of Passive Fund: The Act defines a passively managed fund as one designed to track an index or one that discloses itself as a passive index fund.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Huizenga, Bill [R-MI-4].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Financial Services.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-30.

CATEGORIES

Economy