H.R. 6967: Public Company Advisory Committee Act of 2026

This bill, titled the Public Company Advisory Committee Act of 2026, aims to establish a new advisory committee within the Securities and Exchange Commission (SEC). This committee, called the Public Company Advisory Committee, is designed to assist the SEC by providing guidance on various regulatory matters concerning public companies. Here are the main points of the bill:

Establishment and Purpose

• The bill officially creates the Public Company Advisory Committee.
• The purpose of the Committee is to advise the SEC on:
• Regulatory priorities.
• Public reporting and corporate governance of public companies.
• The proxy process for shareholder meetings.
• Trading in the securities of public companies.
• Capital formation issues.
• The Committee is restricted from providing advice on SEC enforcement actions.
• It will also submit findings and recommendations, which might include suggestions for regulatory and legislative changes.

Membership

• The Committee will consist of 10 to 20 members appointed by the SEC.
• Members may include:
• Officers, directors, or senior officials from public companies.
• Executives from professional or trade associations representing public companies.
• Professional advisors and service providers, such as attorneys and financial advisers.
• At least half of the members should be from public companies.
• Committee members will serve for four years, with staggered terms for initial members to ensure continuity.
• No members can be from organizations already represented on other SEC advisory committees.
• Members are not considered SEC employees by virtue of their membership.

Leadership and Structure

• The Committee will elect a Chair, Vice Chair, Secretary, and Assistant Secretary from among its members.
• These elected officials will serve two-year terms.
• The Chair may form subcommittees to address specific issues and report back to the full Committee.

Meetings

• The Committee must meet at least twice a year, with additional meetings called by the Chair or the SEC.
• Members will receive written notice of meetings at least two weeks in advance.

Compensation and Staffing

• Members who are not full-time federal employees will receive compensation based on government pay rates for their work on the Committee.
• They will also be reimbursed for travel and related expenses while fulfilling Committee duties.
• The SEC will provide staff as necessary to support the Committee's work.

Review and Findings

• The SEC will review the Committee's findings and recommendations.
• When the Committee submits a recommendation, the SEC must publicly respond, explaining its assessment and any actions it plans to take.
• However, the SEC is not required to act on any of the Committee's recommendations.

Nonapplicability of FACA

• The Committee's activities will not be subject to the Federal Advisory Committee Act (FACA).

Relevant Companies

• None found