The Stop Woke Investing Act would restrict the number of shareholder proposals that must appear on corporate proxy ballots by requiring the Securities and Exchange Commission to amend its rules within 180 days. Under the bill, smaller companies would be limited to including no more than two shareholder proposals, mid-sized companies four proposals, and larger companies seven proposals at each annual or special shareholder meeting. Critically, companies could reject any shareholder proposal unless it has a "material effect" on the company's financial performance, explicitly excluding proposals focused on environmental, social, political, or ideological goals that lack direct financial impact. The bill would affect all publicly traded companies and their shareholders by limiting the ability of investors to raise governance and corporate responsibility concerns through the proxy process. The legislation does not include specific funding provisions or implementation timelines beyond requiring the SEC to complete the regulatory changes within 180 days of enactment.
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