Fri Sep 20 12:20:00 UTC 2024: ## Texas Lawmakers Receive Proposal for “Protected Corporations Act” Aiming to Reform Corporate Governance
**SAN MARCOS, TEXAS (September 20, 2024)** – A new legislative package, the Protected Corporations Act (PCA), has been submitted to key Texas lawmakers with the aim of reforming corporate governance and setting a new standard for responsible business practices.
The PCA introduces a unique corporate structure that measures success not solely by profits but by integrity and fairness. The bill incorporates innovative mechanisms like employee representation on company boards, caps on CEO pay, and the inclusion of market value on company balance sheets. It also proposes a proprietary stock exchange with a 10-day holding period after auctioning verified shares.
“This legislative package aims to position Texas as a leader in corporate reform by aligning stakeholder interests and establishing responsible business practices,” stated a spokesperson for the Steering Committee for the Protected Corporations Act.
The PCA addresses several key corporate governance challenges, including the prioritization of short-term profits over long-term sustainability, the imbalance of power between corporations and employees, and the lack of transparency in corporate decision-making.
The bill has been submitted to State Senator Judith Zaffirini, State Representative Erin Zwiener, Senate Committee on Business & Commerce Chair Senator Charles Schwertner, House Committee on Business & Industry Chair Representative Oscar Longoria, and Speaker of the Texas House of Representatives Dade Phelan. The steering committee hopes that the bill’s focus on ethics and long-term value will lead to significant advancements in corporate governance in Texas.
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