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View Diary: Five Montana Supreme Court justices vs. Citizens United (65 comments)

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  •  liminousone11 - on what basis? (0+ / 0-)

    On what possible legal or accounting basis should a company be required to ask each shareholder for an approval to make an independent political expenditure? There is a well developed body of law on when shareholders must vote for a corporation to take a specific action, but those are issuing new shares, or expanding the option pool, or selling or merging the company. On the accounting side if the expenditures are material they must be disclosed, but approval isn't ever required for expenditures (except for very rare circumstances).  The officers and directors are still bound by the same business judgement rules to make the decision to spend money on a political effort in a manner that is in the best interest of the company. As a shareholder why do you think the expenditure would not also be in your interest? The notion that shareholder approval should be required for a $1 million political expense, but not the $100 new facility makes no sense from a legal or accounting perspective. Until these political expenses become material, when they will be disclosed under current accounting rules, there is no need to disclose them, and certainly no basis for requiring shareholder approval.  

    "let's talk about that"

    by VClib on Fri Jan 06, 2012 at 08:34:49 PM PST

    [ Parent ]

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