Ruben Gallego (D-AZ)
Enhancing Multi-Class Share Disclosures Act
A Democratic bill with 1 Republican cosponsor · See the cosponsor
Last activity — Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
This bill, known as the "Enhancing Multi-Class Share Disclosures Act," aims to amend the Securities Exchange Act of 1934. It focuses on issuers that use a multi-class stock structure where different classes of securities have different voting rights for electing directors. The Act would require the Commission to create rules requiring these issuers to provide specific disclosures. These disclosures must be included in proxy or consent solicitation materials for annual meetings or other filings determined by the Commission. The required information must detail the number of shares and the specific amount of voting power held by certain individuals.
Yes
- Scored +4
Does this make what the government does easier for the public to see?
The bill increases corporate transparency by mandating disclosures of specific voting power and share ownership percentages.
- Scored +3
Does this give people more protection from unfair business practices?
The bill enhances investor protection by requiring transparency regarding the concentration of voting power in multi-class stock structures.
The opposite
- Scored -3
Would business owners be better off under this?
The bill creates new compliance and disclosure requirements for issuers with multi-class share structures.
- Scored -2
Would people with substantial wealth be better off under this?
The bill imposes new disclosure obligations on individuals holding significant beneficial ownership in companies.
Who it would affect, and how
Potential Positive Impacts for People
-
Increased Transparency Regarding Voting Power: Under Section 2, paragraph (2) and (3), the bill requires issuers with multi-class share structures to disclose specific ownership and voting percentages. This provides clarity on how much control certain individuals, such as directors or large beneficial owners, actually hold over the election of directors.
-
Standardized Information for Shareholders: Section 2, paragraph (2) requires these disclosures to be made in proxy or consent solicitation materials for annual meetings. This ensures that shareholders receive consistent information regarding the voting power held by directors, nominees, or significant owners when they are asked to vote.
Potential Negative Impacts for People
- Additional Requirements for Issuers: Section 2, paragraph (2) mandates that the Commission establish rules requiring issuers with multi-class share structures to disclose specific information in various filings. This creates a new disclosure obligation for these specific types of companies.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would business owners be better off under this? — The bill creates new compliance and disclosure requirements for issuers with multi-class share structures. Would people with substantial wealth be better off under this? — The bill imposes new disclosure obligations on individuals holding significant beneficial ownership in companies.
- Governance And Ideology
- Does this make what the government does easier for the public to see? — The bill increases corporate transparency by mandating disclosures of specific voting power and share ownership percentages.
- Economy And Finance
- Does this give people more protection from unfair business practices? — The bill enhances investor protection by requiring transparency regarding the concentration of voting power in multi-class stock structures.
- 2/11/2026
- Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 1 Cosponsor added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Mike RoundsRepublican · South Dakota