Institutional Shareholder Services (ISS), a proxy advisory firm that provides voting recommendations to institutional investors, sued to block an Oklahoma law requiring proxy advisors to provide additional financial analysis when recommending votes against company management.
ISS filed the lawsuit against Oklahoma Attorney General Gentner Drummond (R) over HB 4429, which Gov. Kevin Stitt (R) signed in May. The law is scheduled to take effect Nov. 1. ISS is seeking a preliminary injunction to prevent the state from enforcing it.
HB 4429 requires proxy advisors recommending a vote against company management to provide written financial analysis supporting the recommendation. ISS argues the requirement violates the First Amendment by imposing requirements based on the viewpoint expressed in its voting advice. The firm also argues the law would increase compliance costs.
