Political Quotes

“I rise in respectful opposition to this amendment which would remove an important provision from the INVEST Act. Section 307 is not new or untested policy. This exact language passed the House floor earlier this Congress as H.R. 3357, the Enhancing Multi-Class Share Disclosure Act, with overwhelming bipartisan support. Multi-class share structures date back to the late 1800s and were first conceived to allow companies, particularly family enterprises, to maintain control over voting decisions even without holding a majority of shares. These structures have become increasingly common, particularly among newer public companies. Currently the SEC does not require the company to disclose the disparity between an individual's equity ownership and their controlling or controlled voting shares, though many companies already voluntarily provide this information. Section 307 simply standardizes the information shareholders receive in proxy materials by requiring this information be provided in a consistent manner when it comes to voting power, particularly from the officers, directors, and those with more than a 5 percent stake. This is a thoughtful, balanced approach. It enhances transparency for retail investors while preserving multi-class structures as a mechanism to encourage founders to go public. We are not banning these structures. We are simply ensuring investors understand what they are buying before they invest.”