Nashville Standard

WASHINGTON—United States Senator Bill Hagerty (R-TN) has introduced the Rejecting Extremist Shareholder Proposals that Inhibit and Thwart Enterprise (RESPITE) for Businesses Act, a legislation aimed at clarifying that public companies have the freedom to exclude shareholder proposals that interfere with their ordinary business operations, regardless of whether the proposal concerns a significant social policy issue. Representative John Rose (R-TN-06) has introduced companion legislation in the U.S. House of Representatives.

In a statement, Senator Hagerty expressed his concerns about how the Securities and Exchange Commission (SEC) has allowed progressive activists to take control of American companies to advance their extreme political causes. He emphasized the need for companies to be able to focus on their core business operations and job creation for Americans, without being forced to consider harmful and irrelevant shareholder proposals.

"For too long, the SEC has enabled progressive activists to commandeer American companies to advance extreme political causes," said Senator Hagerty. "My legislation frees companies from being forced to consider harmful and irrelevant shareholder proposals, helping them steer clear of progressive politics and focus on creating jobs for Americans."

The RESPITE for Businesses Act seeks to provide clarity and protection to private companies by ensuring that they are not obligated to entertain proposals that are not directly related to their core business operations. This legislation aims to allow companies to prioritize their mission and objectives, while avoiding distractions that may hinder their ability to create jobs and contribute to the American economy.

The full text of the RESPITE for Businesses Act can be found [here](insertlink).

This legislation comes at a time when the role of corporations in addressing social and political issues has become increasingly prominent. While some argue that companies should take a stand on important societal matters, others believe that it is essential for businesses to remain focused on their primary purpose of generating profits and creating employment opportunities.

Senator Hagerty's legislation is seen as a response to the growing influence of progressive activism within the corporate sector. By providing companies with the ability to exclude shareholder proposals that do not directly relate to their ordinary business operations, this legislation aims to protect businesses from being coerced into supporting causes that may not align with their core values or objectives.

The introduction of the RESPITE for Businesses Act in both the Senate and the House of Representatives reflects a bipartisan effort to address this issue. As the bill progresses through the legislative process, it will likely face scrutiny and debate from various stakeholders who hold differing views on the role of companies in advancing social and political causes.

With the introduction of this legislation, Senator Hagerty hopes to create an environment where private companies have the freedom to focus on their primary goals and contribute to the economic growth and job creation in the United States. By providing clarity on the exclusion of shareholder proposals, the RESPITE for Businesses Act aims to rid private companies of progressive activism and allow them to prioritize their core objectives and responsibilities.