Proxy voting is the primary way shareholders influence how the world’s largest companies behave. Currently, a small number of advisory firms have massive influence because so many investment funds automatically follow their lead. If these advisors suggest a specific social or environmental policy, it can be forced on a company simply through automated 'robovotes' from funds that didn't even read the proposal.

If this becomes law, it could shift power away from these centralized advisory firms and back to the fund managers who have a legal responsibility to protect your money. It aims to ensure that corporate decisions are driven by what is best for the value of your savings rather than the preferences of a few consulting firms. However, it may also make it more expensive for funds to operate because they will need to hire more staff to manually review thousands of company votes.