Corporate Governance and Campaign Finance: Citizens United v. FEC (The Need for Federal Intervention)(Part 1)

by J. Robert Brown, for The Race to the Bottom, February 12, 2010.

We are discussing Citizens United v. Federal Election Commission No. 08–205,  Jan. 21, 2010, the Supreme Court‘s recent decision on campaign finance.

So what is Congress to do?  We don’t have any conclusions with respect to a specific federal regulatory regime, although presumably it would include substantial disclosure of the expenses and at least the type of disclaimers upheld by the majority.

Instead, we consider reforms that would address the problem through shifts in corporate governance.  Some have suggested that the expenditures ought to require shareholder approval.  Mark Tushnet at Harvard had this to say:

  • Requiring shareholders to approve a general power in the corporation to spend money on campaigns probably wouldn’t accomplish much. Requiring them to approve specific expenditures—in advance—would, probably to the point of making such expenditures impossible for large general-purpose corporations. (It probably wouldn’t affect small corporations or ideological ones like Citizens United much, which is an attractive feature of the proposal.)  Or, you could require that some supermajority of shareholders approve a general power to spend money on campaigns — say, two-thirds or three-quarters — and treat spending in the absence of such approval as ultra vires the corporation…(continue reading)
Advertisements

0 Responses to “Corporate Governance and Campaign Finance: Citizens United v. FEC (The Need for Federal Intervention)(Part 1)”



  1. Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s




Blog coordinator

Cefeidas Group

Archives

cgl-med-linked-in

cgl-med-linked-in
free counters

%d bloggers like this: