Alliance Advisors Advocates for Shareholder Transparency Reform

Alliance Advisors, a corporate consulting firm based in New York, has launched a campaign to amend a 40-year-old SEC rule. The focus is on changing regulations that allow significant stockholders to remain anonymous to the companies they invest in. CEO Joseph Caruso argues this lack of transparency puts public corporations at a disadvantage.

The rules classify stockholders as either objecting beneficial owners (OBOs) or non-objecting beneficial owners (NOBOs). While NOBOs allow disclosure of their information, OBOs do not, creating transparency challenges for companies.

Alliance Advisors has established the Shareholder Ownership Transparency Alliance (SOTA) to petition Congress to eliminate the OBO classification. The firm aims to present their case to the House Finance Committee in 2025, seeking support from corporate executives and shareholders.

Caruso believes updating these rules will benefit corporations and shareholders, especially smaller companies burdened by current proxy processes. He highlights that greater transparency would enable companies to better engage with investors, fostering an environment where proposals can be more effectively supported and voted on.