In a letter released 8/31/2015, 44 senators are calling on U.S. Securities and Exchange Commission (SEC) Chair Mary Jo White to act on a rule-making petition (File No. 4-637 Petition to Require Public Companies to Disclose to Shareholders the Use of Corporation Resources for Political Activities) that would require companies to disclose their political spending.
Spearheaded by U.S. Sens. Jeff Merkley (D-Ore.), Charles Schumer (D-N.Y.), Tom Udall (D-N.M.), Sheldon Whitehouse (D-R.I.) and Robert Menendez (D-N.J.), the letter states:
“If implemented, the Petition would require public companies to disclose to their shareholders how they use corporate resources for political activities, bringing much needed accountability to shareholders and transparency to corporate political spending. We believe this is consistent with the SEC’s requirement for public companies to disclose meaningful financial information to the public.”
The rule-making petition has garnered support from five state treasurers, more than 70 major endowed foundations, former SEC Chairs Arthur Levitt (Democrat) and William Donaldson (Republican), and former SEC Commissioner Bevis Longstreth. In addition, the SEC has received more than 1.2 million supportive comments from the public and retail investors.
Only about 2 percent of all public companies in the United States disclose their political spending to shareholders, and they do so voluntarily. Shareholders are the true owners of a corporation, and public companies should be required to disclose to their owners how their money is being spent, the letter says.
I have always wanted public corporations to ask their stockholders If they approve their annual political activities and if a shareholder says no, the corporation should reduce the funding by the value of the stockholder's share.
CLICK HERE to read the 6 page (PDF) letter.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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