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The federal securities regulator has sued one of the country's most influential proxy advisory firms to force it to produce documents it had already been asked for.
A proxy adviser is a company that tells large institutional investors how to vote their shares at corporate shareholder meetings, and because those investors often hold significant stakes in major companies, a proxy adviser's recommendations can shape how corporate votes come out.
The Securities and Exchange Commission brought the lawsuit against Institutional Shareholder Services, known as ISS, to enforce a subpoena the agency had already issued.
A subpoena is a formal legal demand for documents or testimony. If the organization that receives one does not comply, the issuing agency can go to federal court to compel it. The SEC has now taken that step with ISS.
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