The landmark Supreme Court decision, Citizens United v. Federal Election Commission, effectively removed limits on campaign spending for corporations and labor unions. Now, the Securities and Exchange Commission (SEC) is seeking new requirements for companies, including publicly disclosing donations for campaigns.
In a televised debate from PBS NewsHour, proponents of both sides of the argument discussed their views on the proposed regulations. During the debate, Robert J. Jackson, Jr., a law professor at Columbia University Law School and drafter of the original petition, says the proposed regulation requires transparency from companies to their shareholders on the use of funds for political campaigns. Jackson argues that investors deserve transparency by the companies into which they invest their money.
Paul Atkins, an opponent of the measure and former SEC commissioner, argues that the funds are not material to whether an investor buys, sells or holds a particular stock; instead, Atkins says, “This is not about disclosure.” He explains that it’s about special interest groups attempting to influence companies “not to engage in political advocacy.” Jackson counters, saying Atkins’s concept of what is “material” is impossible to measure, and says, “It’s clear investors want this information.”
The original petition, submitted on August 3, 2011, states, “As early as 2006, polls indicated that 85% of shareholders held the view that there is a lack of transparency surrounding corporate political activity.” The petition goes on to say the regulations are important, not just for the shareholder, but in keeping corporations accountable.
Shareholders, meanwhile, remain in the dark about whether the political campaign spending of companies affects their profits, says the petition. For now, the commission has yet to make a recommendation either way, but special interest groups and companies would both see the ramifications of the proposed rule in how they operate their respective organizations, and the political power they retain moving forward. The proposed rule, included in the Unified Agenda of Regulatory and Deregulatory Actions, is still under consideration, with no legal deadline as of now, but with a decision expected soon.
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