"States are following Texas into a battle over whether proxy firms should have to justify voting recommendations that are out of step with company management.

Oklahoma and Kentucky are among a dozen states with bills that would require proxy advisory firms, which advise shareholders how to vote on company matters, to issue alerts if they use non-financial measures for suggestions that go against board wishes.

The new ripple of state legislation adds to the scrutiny on proxy firms, whose influence shows signs of slipping as they scuffle with Texas and Florida. The firms, which in January lost the business of ..."

 

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This article was originally published in Bloomberg Law.