No Expensive, Stifling Governance Act of 2023

HR 4644, the "No Expensive, Stifling Governance Act of 2023," allows companies to exclude certain shareholder proposals from voting materials if they address issues like environmental or social policies (often called ESG proposals) and either: (1) the company has already implemented similar policies, (2) the proposal duplicates another submitted proposal, or (3) it received low voter support in prior votes (under 10-40% depending on how many times it was previously voted on). The bill also blocks the Securities and Exchange Commission (SEC) from enforcing a related rule about shareholder proposals. This directly affects companies deciding which proposals reach shareholders and shareholders seeking to influence corporate policies on issues like sustainability. The law aims to reduce what it terms "expensive, stifling" governance processes by limiting repeated or low-support proposals.