The proxy advisory firm has asked that new regulatory demands be set aside, claiming the watchdog “lacks authority” and its actions are “contrary to law”.
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A battle in the US over corporate governance advice provided by proxy advisers has reached a new twist with one of the market’s most prominent players, Institutional Shareholder Services (ISS), launching a lawsuit against the Securities and Exchange Commission (SEC), the country’s most high-profile financial watchdog.
The lawsuit demands that guidance delivered by the SEC in August that would impose tough new regulatory demands on proxies be “set aside” because the watchdog “lacks authority” and its actions are “contrary to law”.
The guidance came at the end of a long-running campaign to bring proxy advisers under closer
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