This bill aims to enhance transparency and accountability in the proxy advisory services provided to shareholders of companies in Nebraska. It introduces definitions for key terms such as "company," "proxy advisor," and "written financial analysis," and mandates that proxy advisors disclose whether their recommendations are based on a written financial analysis. Specifically, if a proxy advisor makes a recommendation against company management without such an analysis, they must provide clear disclosures to shareholders and the company's board of directors. Conversely, if the recommendation is based on a written financial analysis, the advisor must also disclose this information and make the analysis available upon request.

Additionally, the bill establishes enforcement mechanisms under the Uniform Deceptive Trade Practices Act, allowing the Attorney General to investigate violations and enabling aggrieved individuals to pursue civil actions against proxy advisors who fail to comply with the new requirements. This dual approach aims to protect shareholders and ensure that proxy advisors operate with a higher level of integrity and transparency in their recommendations.