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Some corporations seek to silence ‘Trojan Horse’ activists

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Under the Biden administration, the Securities and Exchange Commission (SEC) has made it easier for investors to bring forward proposals to corporations, addressing political and cultural issues. This move has resulted in an increasing number of shareholder proposals related to climate change, abortion, diversity, and other hot-button topics. Some companies, however, are pushing back against these proposals and seeking to limit shareholders' ability to bring them forward. Lawsuits have been filed by companies like Exxon Mobil and the National Association of Manufacturers, arguing that the SEC has overstepped its bounds in deciding which proposals can proceed. Critics argue that while the current system allows shareholders to have a voice, it can also be abused and suppress certain voices.

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