Proxy Advisers May Be Tainted By Conflicts, Lawmakers Hear

Law360, New York (June 5, 2013, 8:27 PM EDT) -- Proxy advisory firms like Institutional Shareholder Services and Glass Lewis & Co. are subject to potential conflicts of interest that could undermine their ability to provide impartial voting advice to investors, officials for the U.S. Chamber of Commerce and other groups told federal lawmakers Wednesday.

Addressing the House subcommittee on capital markets and government sponsored enterprises, witnesses from several business groups said the actions of proxy advisory firms — which provide recommendations to shareholders on a variety of corporate votes — can be affected by competing...
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