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H. Rept. 118-79 1 (2023-05-30)

handle is hein.congrecreports/crptxafji0001 and id is 1 raw text is: AUTHENTICATED U.GOVERNMENT INFORMATION . 118TH CONGRESS REPORT 1st Session HOUSE OF REPRESENTATIVES 118-79 ENHANCING MULTI-CLASS SHARE DISCLOSURES ACT MAY 30, 2023.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. MCHENRY, from the Committee on Financial Services, submitted the following R E P O R T [To accompany H.R. 2795] [Including cost estimate of the Congressional Budget Office] The Committee on Financial Services, to whom was referred the bill (H.R. 2795) to amend the Securities Exchange Act of 1934 to require issuers with a multi-class stock structure to make certain disclosures in any proxy or consent solicitation material, and for other purposes, having considered the same, reports favorably thereon with an amendment and recommends that the bill as amended do pass. The amendment is as follows: Strike all after the enacting clause and insert the following: SECTION 1. SHORT TITLE. This Act may be cited as the Enhancing Multi-Class Share Disclosures Act. SEC. 2. DISCLOSURE RELATING TO MULTI-CLASS SHARE STRUCTURES. Section 14 of the Securities Exchange Act of 1934 (15 U.S.C. 78n) is amended by adding at the end the following: (1) DISCLOSURE RELATING TO MULTI-CLASS SHARE STRUCTURES.- (1) DISCLOSURE.-The Commission shall, by rule, require each issuer with a multi-class share structure to disclose the information described in paragraph (2) in any proxy or consent solicitation material for an annual meeting of the shareholders of the issuer, or any other filing as the Commission determines ap- propriate. (2) CONTENT.-A disclosure made under paragraph (1) shall include, with re- spect to each person who is a director, director nominee, or named executive of- ficer of the issuer, or who is the beneficial owner of securities with 5 percent or more of the total combined voting power of all classes of securities entitled to vote in the election of directors- (A) the number of shares of all classes of securities entitled to vote in the election of directors beneficially owned by such person, expressed as a percentage of the total number of the outstanding securities of the issuer entitled to vote in the election of directors; and 39-006