Friday, November 16, 2012
Shareholder Democracy Needs To Work Better
One of the rationales for justifying the Supreme Court's Citizens United decision, which held that corporation have a free speech right to fund political campaigns, was that shareholders will monitor corporate spending on political campaigns. Apparently, the Supreme Court did not realize that information on corporate campaign contributions is not available to shareholder. This article describes a petition to the SEC that calls for campaign contribution information to be made available to shareholders. Of course, many of the "advocates" for shareholder democracy are opposed to having the SEC collect and provide that information. They love democracy as long as it does not restrict their behavior.