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Companies Only Must Disclose Information Crucial for Investor Decisions.

This bill mandates that publicly traded companies only disclose information they determine is essential for investors making voting or investment decisions. It restricts the Securities and Exchange Commission (SEC) from requiring disclosures that companies deem non-material to a reasonable investor. This change aims to reduce regulatory burdens on businesses but could limit the total amount of information available to the public.
Key points
Companies are only required to disclose information if they determine it is important for an investor's decision to buy, sell, or vote shares.
The SEC's power to mandate new disclosures is limited to information that significantly alters the total mix of data available to a reasonable investor.
Investors might see a reduction in non-financial or peripheral data disclosed by companies if the companies deem it irrelevant to core investment choices.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 118_S_2005
Sponsor: Sen. Rounds, Mike [R-SD]
Process start date: 2023-06-15
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Mandatory Materiality Requirement Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_2005.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-06-15.

What are the main provisions?

Key points include:

  • Companies are only required to disclose information if they determine it is important for an investor's decision to buy, sell, or vote shares.
  • The SEC's power to mandate new disclosures is limited to information that significantly alters the total mix of data available to a reasonable investor.
  • Investors might see a reduction in non-financial or peripheral data disclosed by companies if the companies deem it irrelevant to core investment choices.
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 Sen. Rounds, Mike [R-SD].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Economy