Sen. Overcash files bill in North Carolina Senate to increase proxy advisor transparency

A new bill filed by State Sen. Brad Overcash aims to increase transparency and accountability among proxy advisory firms serving North Carolina companies and shareholders, according to the North Carolina State Senate.

The bill, filed as SB 1057 on April 30 during the 2025 regular session, was formally listed with the short title: ‘Required Disclosures/Proxy Advisory Services.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill, effective Oct. 1, 2026, creates the Proxy Advisor Transparency Act, requiring proxy advisory firms serving North Carolina companies or shareholders to disclose whether recommendations against company management are based on a written financial analysis and to share that analysis with clients and company boards upon request. It defines covered companies, proxy proposals and written financial analysis, and mandates prominent website notices when recommendations against management lack such analysis. Proxy advisors must register annually with the secretary of state and pay a $100 fee. Violations are treated as unfair and deceptive trade practices, enforceable by the attorney general and through private actions for declaratory or injunctive relief.

Of the three sponsors of this bill, Overcash proposed the most bills (33) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Overcash graduated from the University of North Carolina at Chapel Hill with a BA and again from University of Mississippi with a JD.

Overcash, a Republican, was elected to the North Carolina State Senate in 2023 to represent the state’s 43rd Senate district, replacing previous state senator Kathy Harrington.