Enhancing Multi-Class Share Disclosures Act

The Enhancing Multi-Class Share Disclosures Act would require publicly traded companies with multi-class share structures to provide detailed information about voting power in proxy and shareholder consent materials. Multi-class shares occur when a company issues different classes of stock with unequal voting rights, allowing founders or executives to maintain control with less than majority ownership. For example, some companies issue one class of shares with minimal voting rights for the public while reserving stronger voting rights for company insiders.

Under this bill, companies would be required to disclose specific information about directors, executive officers, and any shareholders owning 5 percent or more of total voting power. The disclosures would include how many shares of each class these individuals own and what percentage of voting power they hold. This information would appear in proxy materials used for shareholder votes and other SEC-approved filings. The goal is to give ordinary investors clearer visibility into how voting control is distributed in companies they own, particularly in cases where founders or certain shareholders hold disproportionate power relative to their financial stake.