OSLO, May 24 (Reuters) - Norway's $1.6 trillion

sovereign wealth fund said on Friday it will vote against the

reappointment of U.S. oil giant Exxon's lead independent

director, Joseph Hooley, due to the company's lawsuit targeting

climate activist investors.

Exxon's case against two small investor groups has raised

alarm among activists, proxy advisers and some shareholders who

argued it would muzzle debate at public companies.

"Norges Bank Investment Management continues to place utmost

importance on the protection of shareholder rights and raises

concern around the potential impacts of litigation against

shareholders stemming from the submission of a shareholder

proposal," the operator of the Norwegian fund said.

NBIM is Exxon's 6th biggest shareholder according to LSEG

data with a stake of 1.23%.

Shareholder proxy advisor Glass Lewis earlier this month

recommended investors vote against Hooley at Exxon's May 29 AGM,

citing what it called the company's "unusual and aggressive

tactics" in pursuing a lawsuit against activist investors.

Exxon has said securities regulators have allowed too many

resolutions to come to a vote, costing companies money, and that

it hopes its lawsuit will help bring about reform.

Norges Bank Investment Management will also oppose the

re-election of Exxon Chair Darren Woods due to his dual role as

CEO. The Norwegian fund believes that as a matter of principle

the two positions should not be held by the same person.

The Norwegian fund has opposed the election of Woods to the

board every year since 2017.