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B C Jat New York University School o Law

Corporat e Ca mpa ign S pend ing :g iv ing Sha r eho lde rS a voiCe

C -S

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ABOUT THE BRENNAN CENTER FOR JUSTICET B C J NYU S l L - bl l l j . O

, .

A l , bl l , B C b l , l l l l ,

l, bl bl .

ABOUT THE BRENNAN CENTERSCAMPAIGN FINANCE REFORM PROJECTC l b , ,

b l l l l q l l B C l q b

l l , b l l l , bl l l . T B C l, , bl l l l

l l bl l .

ACkNOwlEdGMENTST l l K l J. S , B F P A W l , D l G R b M l

b , B C D P S L , C C l F A.O. S z, J ., C l M

K ll W ll , M M z l , D Al H , S N l , l l L KI , A G l, R C , P S , C G ll

. T B C D All P C N Y , JEH F , J F ,

I , R ll B F , W ll Gl b l F bl . T x

l l b l B C .

. T b C C A b -N D -N Cl ( :// . ). I b l

J , l C b , b l , , C

Pl l B C J .

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B C J|

ABOUT THE AUTHOR

C -S ll C l D P B . M . -S l

B.A. l H . S J.D. C l bS l. S - l A W b What Albany Could Learn rom New York City: A Model o Meaning ul Campaign Finance Re orm in Action, Alb G L.R. 4 ( );Electoral Competition and Low Contribution Limits ( ) - K l l W ll D . T S ; Improving Judicial Diversity ( ) - M q C E G bl b Tompson West Reuters in Women and the Law ( ), ll Corporate Political Spending & Shareholders Rights: Why the U.S.Should Adopt the British Approach( ). S b bl

New York Law Journal , Roll Call , Business Week , Forbes , T R . , S l .

, CNN. ABA Judges Journal . S l b q b Te Economist , Te National Journal , S R NPR. S l l l l

j C , l P LLP b S R D b .

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| B C J

TABlE OF CONTENTSF 3

Ex S 4

I : T P R l C M D PC I: T L l L ACitizens United 7

C II: T P bl C P l l S

C III: T B M l

C IV: P l P l - S C U.S. S L

A x A: B /A C R A P l l S

A x B: A S S l R A

E 7

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B C J| 3

FOREwORd

I Citizens United , J , , U.S. S C q

l l , b l F A l . T l l . W l l l

ll , bl x

C l ll- l l . , l

, l b , b . A

l z b l

.

T l -Citizens United l . : , q report corporate political spending di-

rectly to shareholders, , q obtain authorization from shareholdersbefore making political expenditures . M l xl , ll l l l

l .

T l x

b S C Citizens United . T B C ll l b ll l bl b l

. W ll l b l l l l F A b j

C . W ll l l b ll ll

I b bl b

.

S M. LD , D PB C J

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4 | B C J

EXECUTIVE SUMMARY T S C ll l l l l l

Citizens United v. FEC , J , . b

l , C l F A l , l l b , ll

l l .

N C l bl l - F l , l C b l l

l . T l l , l , l

l b . U

, q l b l b ll , l l M , l l l

T b . B l . I Ul l l x l l . A

z l l b l l .

T U S l Citizens

United ( ) l ll l l ( ) q l z l l

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B C J| 5

INTROdUCTION

The Proper Ro e of Corporate Money in our democratic Process

I Citizens United , U.S. S C j F l .R l l A -

l , l 4 ( ) C - bl l

l . T , l 3

P l l b bl . F l ,

b .4 R l

bl l. W l l ( ) b ,5 l l

b b .B b l l l

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l b l

l l .7 T l -

l l b

-l b

l b ll .

S l l l ll l

. F , l l l l .U

b j l , ll l . BCitizens United , ll ,

l b ll , l l . N , Citizens United

l l ll ll 5 . Y

Citizens United c s

s c s c

s c y

c y su s

c s f c s

s w s 50 s s.

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| B C J

l , l b l l b l . F ,

l l q b l l l .

S l l l l l x l l l . A b

l l b . S l l b l l l b l

bl l . T , U.S. l , l l l l

T ll b l b A l , l l l l

bl l b l l l l l l ll l .T ll x l

U.K. bl l . F ll , l l . M l B

l , C l q b l : l

l l l l .

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B C J| 7

CHAPTER 1. THE lEGAl lANdSCAPE AFTER CITIzENS UNITEd Citizens United v. FEC , J , , ll

l l l . Citizens Unit-ed l l l q l : l l H ll : M , l l -

H ll Cl , ll b - , l l l - , l- l l l .

B q , S C Citizens United l l F A R

. I , C b 3 l b x l l l l

l l.Citizens United l bl l

B Citizens United , - x l l q l l x (SSF ), l l l (PAC ), l ,

l l l l . T l l

b b b PAC bj PAC -

l $5,

$ ,4 l ).

T l b -

ll l . R z

, , ll l l- l l l ,

l x b l T

l b x l l , xl , ll l . N , -Citizens United ,

b b l ll l l .

Citizens United s s c

f c s f u s w c us ss

b f c s us

s y cs.

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| B C J

CHAPTER 2. THE PROBlEMS wITHCORPOR ATE POlITICAl SPENdING

A. The democratic Prob emT bl b l l l ll b l l b b z . T l b

ll b x l , l l , b l

x.

D l b , l l

l l . B q l b ll l , l l l l.

I U.S. l l , b l , l b ll l $3. b ll . M PAC l ll b3

PAC b C l PACb 7 .4 Al PA

l ,

5, 73 , P l l Ax l b ,

$ ll l l l , z .5

Ex l l A l. F ll l Citizens United , l

b b l . A q : ll l l

l b l b 7 A l l l l ,

l bl b , bl

.

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B C J|

B. Other Peop es Money W bl l -

, l , b S b b

ll .B l l

l l bl . F x l , b P A l, M , W3 l

bl l l , l l l l .4

A l - l l l l , ll q l l l l q l l .5 C q l ,

l b l l b PAC q ll

l l lN S C l

b l l l .

The ifference bet een a corporate PAC an the corporate treasury

A corporate PAC, or SSF, l l z b ll b l . T

PAC l l , x , l l l l .E

PAC l l l . I l $5, SSF x $ , ll SSF, PAC .

B ,corporate treasury l ll

b , bl l - l ll l .

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|B C J

T C P l l A b l (CPA) l l l b l l . T CPA :

E , Gl b l C , W l C , Q W E

b b , , ll ll l l b l

ll x l .7

E , Gl b l C W l C b ,

b b U.S. ;Q W E l-l l b .

F , l F A l b

A E C G S x l :

T x l l l b . S l , , l l

b ll ll . A l l l x . T

ll l l l ll . A l

. T b l

l .3

1. Poor Disclosure of Corporate Political Spending A J K , l Citizens United ,

l . AS l bj

b l l 3 U l , l l bl

l l b b

A U.S. l , l b

z l .3 T bl b l l l 33 U l ,

l , l l bl l b l

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a. Campaign Finance Law Reporting

C l l l l l . C l l b b

ll

. F , ll b b l , F q l .

T F l El C (FEC)q ,l l . C -

SSF l FEC.34 b

b SSF l l l, bl

x SSFl . bl SSF

-b - - . A SSF

PAC , , l l . F x l , L l L P l l A C , D B lF D F l l b SSF .35

F l l b l l . P -Citizens United ,

l l . A Citizens United , l b ll ll 5

l , l l l q

R l l x l l l

. W l l l ll bl( , b b ), l

ll l l . A CP j , , l

bl b .3 l l l l l b l

l l37 l l l l b .3

as U.S. w s s w, c

s c s c

y cs w u fy-

s s b f

f f c y c k

s c s w u y u z f s s.

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|B C J

S l l ll , l , . F x l ,

U.S. C b C , l l l l

.3

I l , b x- x z b l l l .4

b. Corporate Law ReportingF l l l l q l

l l . T S Ex C l l q l b bl l -

l bl . E l l , l l

l l bl , F. B l l b l ll x l l

, x bl ll.

T bl l ll l l W , C l SEC

3 A q bl ll l bll l b

l l SEC q l l

q bl l l C FP A .4 I l l ,

J R. E l :

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q l b b , b ll

l . S l q q l

l ll bl , l , l bl .4

W l W - l l - - b b , b C E l

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B C J| 3

l l b b - l l x

b - .43 F , l

l l l - l ll .44 A P J ll F x l :

P l l b ll l b l l x ll bj

l l . T l l l l b .45

W b b l l , l ll l l x4 T b

b b l b l l b l bl :

S l l b l l

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ll l l l qb z

b .47

2. The Lack of Shareholder ConsentI Citizens United , J K , 5-4 j ,

l b l l b b b l

.4 H , ll b b l , l

l l l , l .

O bl bl l l x q l l l

PAC x l l ll

t s b s c sy y f f

b w c s b f -

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c f s cu s ws

b f s s.

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4 | B C J

.4 I , b l x l z l .

S -b l q l

l . T 3 l l l l l b Citizens United ,

b l l bl l - l l l x .

I , ll l l l . I l

, , b j l l l 5 T ,

l ll l b b

l l l l . P T J l :

S l ll l l ll . T

l b , C l b j l l

b l ll l b .5

N S C

q l l l l l

.5 O l l l q z l

b l l x

U.S. l .

S l l ll

x l . F , Citizens United l , C J J R b-

S l G l El K , [ l ] ll bj l l l b ?53 B l

b l x l l bl . F l

a b sys s w c

s s k w b u

s u z b f

s c s c ff s.

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l 4 l . I l l . T l

l b b l . S

q l .

M , l , ll ll- l l l x l l

T l b , ll l l . A b

b z b l

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|B C J

CHAPTER 3. THE BRITISH MOdEl

T A l l b l b . T

. T B l l l l l l l S C Citizens United l l b l

ll 54 l l , .55 I , U.K. C

A , q B l l l b ll l b l l 5

L U.S., U.K. l . A H C x l l l b

U.K. :

T bj [ - ] , l l , l

b . T l . A

: l , , ll , l b

M , l , bl l l 57

T b , B l b

C S P bl L .5 L N ll, C -, x l :

M b bl b l l j l b b l , l b

. W , , ll bl

l b U K b .5

C q l , C l l l T

b P l .

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B l q l l l l l .I E l , q

-K l U S , $3, x .

I q l , B l 5, l l x .3 A x ,

5, l $ , . I l B l , l l b

l .4 Al , B z ll l bl l

l l

x .5

T z l l % .

I , B A b ll l l x B l C7 B

b U.S. l .F l , l Appendix A. T , z A l B l

l q l A U.K.

Ho the British System wor s

B l l . I l l b

l ( , ). S l

. I l , bj l l b l .

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|B C J

A. The Apparent drop in Corporate Po itica Expen ituresT l l C A l l b

l b b l l , U.K. l l , l

bl - , l ....T bl l - l bl - - l l U.K. l . T , b b ,

P .7 T L b P ll b ll l.7 F x l , 5- l , l

L b P l , .7 I , , C P x l .7 ll 45 .73 S l l ,

7- l , l l C P .74 A , l C ll .74 ll . ll 3.75

b , B l l l x7 O -ll, , b l

. A 7- 5 , .77 I , l b U.K.

l 5 , l l l l l . O 7

H , l b l B U.K. l l ,

l l. A ll b b l , l l

l l l l . W z l

l l l .

B. U.k. Proxy Votes to AuthorizeBritish Po itica Spen ingT B C P I RL (PIRC), B

l , z l l b bj C A . T

PIRC l l b J , 5 j C A l 3 l l

.

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T PIRC l B zl C A l l b

, 5 , l .7 T x . F x l ,BP ( l B P l )

4 , l l 4 , BP I l L .B A b ll ,b l .

C. disc osure of U.k. Corporate Po itica Spen ingI l l , l

b .F x l , I V PLC l , [ ] G ll

ll 7, ( 7: , ):L b P 3, ; C P

5; L b l D P , Pl C P , 77.3

M l - l l -

l x U.K. E .H

l l l b . C l I PLC

75, C P .4

A l b B l l l l

x l , B A l :

W l l l l x . T

l l l l x M 3 , , l ( : l).5

M l l l b . F l , l : [ ] G

l l l l l .B b l

, [ ] C l l ll .7

a w f c u

s by B s f ss y c s

f f c

s s cy

s c c .

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|B C J

S l l l l z l

Gl x S Kl x l :

GSK l b l l l l .H , GSK l U.K. l ( l l

b l ) GSK ll l l l b EU.

C b :

T C l l b l l . C , b ,

.H , [U.K. C A l l x . A l ,

, l ll b AGM C l l , .

d. Resistance to U.k. Corporate Po itica Spen ing W l B ll

x l l ,l -ll l l b q b B .

H , l , l b .I 4, x l , l l . 5 ll l l b BAA PLC. T l

l l BAA b P l . T l

b l l , l l .3 T l z .4 I l

l . N l , l , BAA

P l .5

T BAA x l b l l , l

l . B l , lBAA, , l A .

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POlICY PROPOSAl

CHAPTER 4.SUGGESTEd CHANGES TO U.S. SECURITIES lAw T U.S. l B l l x b

( ) q l l l l l( ) b lb l l x , (3) l ll l bl l

l .

T ll l b l

x . A -b - l l Appendix B .

A x l C , l , l l, l b

b l . A l , C l q l l , l l

C P l l A -b l , 7 , 4

S&P ,

l ll l l l .

b l, l l l l l

b q -l bl b ,

l b l b . l , l l l x l

l F -Q SEC. B l ll b -Q l , b

T B C l ll . T C P l l A b l ,7 I C C R

b l ,C C , N C F , j , ll b l l l b

a u f C f

p c acc u b y, 70 c s,

48 f w c S&p 100,

sc s

c s s s.

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|B C J

B l l . C l , , z l l b

l ll : A l

( . . ., AGM), l l x l l l l l l .I l j

(5 % l ), l ll b ll b bl l l

l . H , l l

l l l l l l b

.

F ll , , B l

b l : l l b lD U.S.

z l l x l b ll

l bl z .

O B l b . A l l

l l . B , l, l l q ( z l l b

l l bj l l l l b

I , A , U.S. l l B l , l q

:( ) l l l l ( ) l z b I ,(3) z l l l l l l b l

t s s c s U.S.

s cu s w w

c s s

u s cy f

c c s

w su w c -

s s s y

cs, y s w fu

f c s .

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B C J| 3

T l b l l l ll bl l - q l l l .

J K Citizens United bl .B

bl l l .

T U.S. l ll l l , ll

l l , . T l l B b

. T l l A

-Citizens United l .

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4 | B C J

APPENdIX A Samp e of British/American Companies Reporting

American Po itica Spen ing 103

Company Website US Giving Disclosed

A -Z:// . z - l -

. / 7/b _ // _ .

:// . z - l -. / / l /AZ_

AR _F ll. ( 5)

: $4 , 757: $3 , 45

: $ 5, 3 b US l l , -

l j

- bl l

Gl x S Kl PLC:// . . / 3 .

3 . # 4: 3 , ;

7: 4 , ;Gl x l l b

J l b GSK PAC : 53 ,35

7 5 , 7 .

L M:// .l . / -

/ _ /P l -lD l . l

H PAC, DG A & R bl G -

A .

l x : $ ,375.

Exx M b lC

:// . xx b l. /C -/I / / / -_ _ .

C l l b U.S. l 5 7 :

5: $34 ,: $4 ,

7: $ 7 ,: $45 ,

N l G:// . l . / -

l / 7/ _ _ /_ . l ; :// . -

l . / l / /:// . l . / -

l / / _ /x. l

- 7: $ , . N l G ;

$ 4 ,7 . N l G PAC7- : $7 , . N l G ;

$5 , 5 . PAC; K $37, 5- : $ , . N l G

b NYS PAC ; $ 5 , 75 . N lG PAC

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APPENdIX B A Summary of the Shareho ers Rights Act

SECTION 1. SHORT TITLE.

T A b S l R A .

SECTION 2. FINDINGS AND DECLARATIONS.D b l z

l l x .

SECTION 3. DEFINITIONS.

SECTION 4. SHAREHOLDER VOTE ON CORPORATE POLITICAL ACTIVITIES.

A S 4 S Ex A 34 ( 5 U.S.C. ll b :

( ) ANNUAL VO E R q l l b z l

x .

( ) SHAREHOLDER APPROVAL R l z x l l .

(3) DISCLOSURE OF SHAREHOLDER VO ES R q l bj 3( ) Ex A

ll l .

(4) DIREC OR LIABILI Y M bl z b x l l ,

l bl , .

(5) RULEMAKING D S Ex C l l b

A .

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|B C J

SECTION 5. NOTIFICATION TO SHAREHOLDERS OF CORPORATEPOLITICAL ACTIVITIES.

A S Ex A 34

l l l l . q l b bl l l . R q q

bl ; b b .

SECTION 6. PUBLIC DISCLOSURE OF CORPORATE POLITICAL ACTIVITIES BY THE SECURITIES AND EXCHANGE COMMISSION.A S 4 S Ex A 34 l

l l l b bl l

q l b l b b l l l . D S Ex C q l l l bl l l bl Ex C b bl ,

l bl .

SECTION 7. REPORT BY THE OFFICE OF MANAGEMENT AND BUDGET.D O M B l

q A ; ll Ex C l

A .

SECTION 8. SEVERABILITY.P A l l , A ll b .

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ENdNOTES . Citizens United l b . C

b U.S. l b . H , b ll , l l

Citizens United l x l .

. See Joint Economic Committee, 106th cong., he Roots of Broadened Stock Ownership I ( ), . . /j / x/ / . ; I CI ,U.S. Household Ownership o Mutual Funds in 2005 , ( 5), :// .

. / / - 4 5. ; he Investment Company Institute, 2009 InvestmentCompany Fact Book 8 (4 . ), :// . b . / / _

b . (H l l [ l

- .).

T l b 3. publicly-traded . T l - l

l . F , l l . H l l l

b bl l - b ll , l b x

l . T l b l l (PAC ), l . P l l

P R l , C P l l A b l ,4. Shareholders See Risky Corporate Political Behavior As Treat to Shareholder Value, Demand Re orm, CPA Poll Finds , (A l 5, ),:// . l l b l . / x. ? = /G D A

( ll 5 [ l ] l l

l l . 4 l 4 b l ll [ ] l

B F. F & J C. R ,5. he Green Canary: A erting Shareho ders and Protecting heir Investments ( 5), :// . l l b l . /

x. ? = /G D A / / ; R j A l, F l x M , &

W ,Corporate Political Contributions: Investment or Agency? , :// . . /l3/ . ? b _ = 7 7 ; D z I , P M , & T A

Fist ul o Dollars: Lobbying and the Financial Crisis , IMF W P , 4 ( ), :// . . / x l/ b / / / / 7. (O l bb [b l ] x-

x- [ ] l z l b

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|B C J

, b l l bb l ll- .);see alsoC E D l ,Rebuilding Corporate

Leadership: How Directors Can Link Long- erm Per ormance with Public Goals ( ), :// . . / /l b / / _ / 3. (T

b l bl l - l l

l , l b l l - b l b - l , l b , .).

Green Canary 6. , supra 5 4 ( l l b l .).

7. See M H ,Bodies Politic: Te Progressive History o Organizational Real Entity Teory ,5 U. Pitt L. Rev. 575, 3 ( ) ( l

A l , [C] A l l

l, z . T l l

l ll b b

. See D l G ,Essential Speech: Why Corporate Speech is Not Free , 3 Iowa L. Rev.5, 55 ( ), :// . / b =7 47 5 (C , ,

b x . C l l , l bl

, l l b l .).

Cl b l l .. See Wi iam Meade F etcher,F etcher Cyc opedia of the Law of Corporations 4 ( ) (T

b l , l

b l . I j , bl x

l l , ll

l x l l .).

F l ,. see C -S ll ,Corporate Political Spending & Shareholders Rights: Why the U.S. Should Adopt the British Approach( ),

:// .b . / / / _ _ _ _l _ /.

. See R b S. C & D l J. W l ,Can Lower ax Rates Be Bought? Business Rent-Seeking and ax Competition Among U.S. States , F l R B S F W P S (D . ) (D 3 , $ .5 b ll$5 , b b b

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$ .5 B ll , x l 33% b l ( l ), 33% , %

, % (l, j ).) (H , b

.).

. See Center for Responsive Po itics, op Nationa Donors Based on Com inedState and Federa Contri utions, 7- ( ), :// . .

/ /l _ . ? =A ( l l); L F l D ,Politics Across Borders: Nonintervention and

Non orcible In uence Over Domestic A airs , 3 American J. of Internationa L. , 4( ) ( U.S.- , - PAC l

U.S. l l .);see alsoEl l C ,Register o Donations to Political Parties ( ), :// . l l .

. / l - / l l . (l A b B l l M , N

O l, C q C L ., ).3. Center for Responsive Po itics, 2008 E ection Overview, :// . .

/ / x. .

U.S. C ,4. able 415 Contributions to Congressional Campaigns by Political ActionCommittees (PAC) by ype o Committee : 7 , :// . . /

/ b/ / bl / 4 5. (PAC b C $3 7 ll $ 4 ll C PAC ).

P R l , C F I ,5. Party Conventions Financiers Have Spent Nearly $1.5 billion on Federal Campaign Contributions and Lobbying Since 2005 (A .

, ), :// . . / / R l . x?R l ID= 3 ( l $ .3 b ll l bb l ).

R M ,. Judicial Activism on Campaign Finance Law , Rea C ear Po itics, (A .3, ), :// . l l l . / l / / / 3/j l_

_ _l _ 774 . l ( [ ] W l-M lI b l , W

l x .).

G ,7. supra , 55, (W [ ] l, l

ll l b , ll b l b l

l l ll b ll ll ( x , j .).

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3 | B C J

. See McConnell v. FEC , 54 U.S. 3, 43-44 ( 3) (O l q l b G b

b l b . C l l

l j z ll

( l ). C.F.R. . ;. Fed. E ection Commn, SSFS and Nonconnected PACS (M

), :// . . / /b / . l.

. Fed. E ection Commn, Contri ution Limits for 2009-10 ( ), :// . ./ / bl . .

. See FEC v. Beaumont , 53 U.S. 4 , 54 ( 3) ( x l [ ] b l l

l l

.) ( l ).N l Alb -N ,. Give to Get? Financial Institutions Tat Made He ty CampaignDonations Score Big Bucks From Te Government , (M . , ), :// .

ll . / /R /GIVE_ O_GE _ ARP_R . ?PHPSD= 73 7 3 b 55 b5 57 3 7 ( 75 l

ARP b l b l $ .4 ll , b ll ll 5

7- .); C & W l ,supra , 3 (F l $ b b l

l $4.).

T A l l l3.l l l l . M F ,Te Characteristics o Politically

Connected Firms (O . ) ( 47 , l l - ); M F , R l

& J J. M C ll,Political Connections and Corporate Bailouts (M . 5) ( 35 l ll - l l l

l - ); P l K. C , M F & D PTe Quality o Accounting In ormation in Politically Connected Firms (J . ) (

, q l b l ll l - .); M B ,

K z, A S & D T ,Politically Connected CEOs and Corporate Outcomes: Evidence rom France , ( 4) (I F [ ] b [ l ll ] CEO , , l

b - CEO .).

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B C J| 3

4. See A l l.,supra 5, l l - , M C -F l l

l l . M , l l l x ll l

ll.Id. 34 ( l [ ] ,

b , l , l ll , l x - .). Ex - b l x W ll l

N b ll .Id. 7. T $ , l l l $ .73 ll .

A l - l l l l b b l l .Id. ;id. 3 ( , l

x .);id. 3-4 ( [ ] l l , l bl

b bl .). 5. Id. 3 .

L E. L bl , T P P l ,. Pharmaceutica E ecutive, (O b4) (S [ l l] b

b l, l l b l l see also b 7 b M . L bl H l bl : A Te Power o Proxies and Shareholder Resolutions , HLS F C G F l R l (O . , 7), ://bl .l . . / /

- - - x - - l - l /.

7. Green Canary, supra 5, 5.B C C , CNBC (S . 7, ), :// . b . /.

/ 7 5 ? l = ; Al H , E O G R : P l l I Wa Street Journa , (J . 3 , ) ( E l . B

l l l l P z .).

Q I A H l A I L ,. BusinessWeek (F b. , ), :// .b . / z / / _ /b3 7 . (F , QC I l I . b ); Ex

Pl L U l , N.Y. imes (D . 5, 3) ( W []

b b $3 b ll b ).E C G S ,3 . Blue-Wash( ), :// . . /

/ . l.

3 . Citizens United v. FEC , N . - 5, l 54 ( ).

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3 | B C J

D S l I ,3 . Social Impact Update Forth Quarter 2004 ( 4) (D l l l

l l b x l l b

33. See A W l ,Other Peoples Money: Corporations, Agency Costs, and CampaignFinance Law , Georgetown L. J. 7 , 3- 4 (J 4); J S. b, Able but Not Willing: the Failure o Mutual Fund Advisers to Advocate or Shareholders Rights , 34 J. of Corporation L. , ( ), :// . . / l3/ .

? b _ = 3 (A x l 77.7 ll l U q l .);id. 5 (I - ,

l .).

I l 34. FEC FCC, l . S Fed. E ection Commn, E ectronica y

Fi ed Independent E penditures ( ), :// . / / l / _l; FCC, E ectioneering Communications Data ase (ECD) ( ), ://

ll . . / /.

35. Fed. E ection Commn, Contributions Received by Abraham Lincoln LeadershipPolitical Action Committee , ://q . . / -b / _ /C 357 5/;Contributions Received by Democracy Believers Political Action Committee , ://q .

. / -b / _ /C 3 3 /;Contributions Received by Freedom & Democracy Fund , ://q . . / -b / _ /C 4 7/.

3 . See C D l P j , G S D l ( ), ://l . / / x. l.

J P , M F P l l P O l ,37. L.A. imes (M . , ),:// l .l . / / / /b / - (C bl , b l

l b b l l, l l l .).

3 . Mutual Protection: Why Mutual Funds Should Embrace Disclosure o Corporate Political Contributions/Common Cause and Center or Political Accountability , ALI-ABA Courseof Study Materia s (D . 5).

B F. F & J C ll,3 . Hidden Rivers: How rade Associations ConceaCorporate Po itica Spending 1 ( ), :// . l l b l . /

? = /G D A / / 3 .

4 . Id. - ( l ll ll . I 4,

ll b j x l l l bb

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B C J| 33

l b l l . N q b l b b .).

S. R . N . 5- 4, 5 C ., S . 77, 77 U.S.C.C.A.N. 4 , 774 . WL 44 ( R b SEC l

b 3 U.S. l ll lll . F

S J , I l , N l l . T A b b . C

l b . T l b .).

J R. E , O B B b , C A b l ,4 . Securities and Exchange Commission News , (O . 5, 7 ), :// . . / /

/ 7 / 57 . .

B F. F & J C. R ,43. Company Political Activity Requires Director

Oversight , ALI-ABA Course of Study Materia s, 3 (D . 5). 44. Id. -3;see alsoV B ,Business Corporations and Stockholders Rights under the First Amendment , Ya e L. J. 35, 37 ( ) ( [ ] l

b l l l l l l

ll bl .);id. 3 -4 ( l l b b

J ll F ,45. Te Bad Man Goes to Washington: Te E ect o Political In uence on Corporate Duty , 75 Fordham L. Rev. 5 3, 3 ( ).

T l b l . H (L M4 . q b l l l b . S

A . : 5 5. (F); M . A . S . 3 . .

I M. M ll , H ll J. G & R b C. G , W l, G l & M47.Rethinking Board and Shareholder Engagement in 2008 (J ), ://bl .l .

. / / l / / / _ ll _ --j - . .

4 . Citizens United v. FEC , N . - 5, l 4 ( ).

A l S C l 4 ..FEC v. Massachusetts Citizens or Li e, Inc., 47 U.S. 3 , 57-5 ( )

( ). (T b l l l

ll

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34 | B C J

bl l l b

5 . Marsili v. Pacifc Gas & Elec. Co., 5 C l. A . 3 3 3, 3 (C l. C . A . 75)( z l l b b

b j l );Simon v. Sw. La. Elec. Membership Corp., 7 S . 757,75 -5 (L . C . A . 7 ) ( j l l b

l l ll l l l )

T W. J ,5 . People o Color, Women, and the Public Corporation: Corporate Hierarchy and Racial Justice , 7 St. Johns L. Rev. 55, 5 ( 5) ( ).

O l L M q b l l5 .x . Ssupra 4 .

R - 57-5 ,53. Citizens United v. FEC , N . - 5 (S . ,), :// . . / l_ / _

5%5BR %5D.

U B l l l l : ( ) 54. ; (b) l ; ( )

l , b , ; ( ) ( b b l ) x

l b ; ( ) l ; ( ) l

l b ( l P l l P , El R A , . 4 5 ( ), ://

. /A / / _ 4 _ _ . A , BP l ll l l .

C B l b bl 55.l l x . A M ll & P S , Association for Accountan

Business Affairs, aming the Corporation ( 5), . . / b /C . . ( [ ] l b b

l l l l .).

P l l P , El R A ,5 . supra 54, . 4 3 , 4 ,. ;see alsoEx l N P l l P , El R

( ), . 4 , :// . . . /AC S/ / / _ 4 _ _T C A . A l

x . I , j l l bl z l l x l . C3 , 374 ( ), :// . . . / / / / _ 4 _see alsoC A R l A ( 7), :// .b .

l / l 37. .

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B C J| 35

A l W l , P l C C H C L b57. Te Political Parties, Elections and Re erendums Bill D , (J . 7, ), :// .

l . / /l b/ / / - . .

H D ,5 . he Funding of Po itica Parties in the United Kingdom: heGovernments Proposa s for Legis ation in Repsonse to the Fifth Report of theCommittee on Standards in Pu ic Life 1999-2000, :// . . l-

. . / / 44/44 3/44 3- . .

5 . Committee on Standards in Pu ic Life, he Funding of Po itica Partiesin the United Kingdom, ( ), :// . . l- . . /

/ 4 /4 57/ l - / l - . .

. Id. .

P l l P , El R A ,. supra 54;see alsoE ectoraCommission, Guidance to Companies: Po itica Donations and Lending ( 7),

:// . l l . . /__ / / l l_l / 4/ 37 3/C -G -F l _ 777 - 443__E__N__S__W__. .

T l l l . T l. , 7 l l . S Department for Busin

Enterprise Regu atory Reform, Government Response to Consu tation onthe Companies Act 2006 Accounting and Reporting Regu ations ( 7), :// .b . . / l / l 4 4 . .

C A ,3. supra 5 ;see alsoC A : Ex l N ( ),:// . . . / / / / _ 4 _ . .

P l l P , El R A ,4. supra 54.

C A ,5. supra 5 , 3 .

T C (I R U P l l D Ex.R l 7, S I 7 N . 4 (J l 5, 7), :/

. . / / 7/ _ 7 4 _ _ .

7. See e.g., A Z ,Directors Report: Business Review: Corporate Governance: Other Matters , :// . z - l . / 7/b _ /

_ . ( A Z US l l

$3 , 45 ( $4 , 75) l l l

.); N l G ,Directors Report or the Year Ended 31 March 2007 (M ,7), :// . l . / l / 7/ _ _ / _l ( N l G USA b l

$ , (5 , ) . N l G USA l l

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3 | B C J

l b l l b , $ 4 ,7 (7 , ) / 7.).

S K , BAE A F D US P l l C.Financia imes, A , ( BAE, B ,

l b US l l , b l b El G M F C PAC O C G $ .3 M

C C , N.Y. imes, A 7 (M 4, 7).

P H , B B S : P B l C l I. heimes, (M 3 , ), ://b . l . . / l/b / _

/ l 4 53 . .

P R l , L b R D ,7 . ories Still Get Corporate Millions (J ,), :// .l . . / . ? = & =3 (T C

l .74 ll l j [ ] L b ll ,5

R D ,Party Funding , La our Research 11 (O . 3), :// .l . . / b/ l /l 3 . (C , , 44 CP 45, L b P - 3 l l .).

L E. Kl ,7 . On the Brink o Re orm: Political Party Funding in Britain, 3 Case W. Res. J. Int L. , 3 ( ).

7 . Committee on Standards in Pu ic Life, supra 5 ( 47, C G , 3 , GLC L , , M G

L b P .). 73. Id . 5 , 5 7 ( l. ).

P R l , L b R D ,74. ory Donations ake a Dive (N . , ),:// .l . . / . ? = & =33 .

75. See supra 7 .

7 . See T C - G , Annual Report and Accounts 2008 , 3 ( ), :// .- . /C /PDF /A l_R _ . (I b 47 , ( 7: 4 , 3) C - P

M l P -D ,77. British Party Funding 1913-87 , Par iamentary Affairs, A l , (l 5 , : G W H l& C l H l , l W , R I , H

, P & O, U B , All L , l H , Pl , W bC l G l l , R l, G R l Ex , S All , W ll

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B C J| 37

H b , G l A , N ll, H F , B , BG l El , Gl x H l , R ll R , R l I , U , H l ).

7 . See l supra 77 5 , . B B El l C b

b - , l B A ,45 l . El l C ,Register o Donations to Political Parties ( ),

:// . l l . . / l - / l

F x l , l A Z 7 . l l ; l l

l l ; l l x ; x [ ] $ A Z , AstraZeneca Notice O Annual General Meeting 2009 and Shareholders Circular , ( ), :// . z . /_ 3 7 / /

/ / -AGM/AZ_N M_EN. . O l l b .See e.g., 3 G PLC, N A l G l M 7,

( 7), :// .3 . / /AGM_-_ _ _AGM_ 7. ( q l l b , b ); B l B , Annual General Meeting

2009 and Separate Class Meeting o Pre erence Shareholders , 4 ( ), :// .b l b . /bb / / / / / . ( q b 5, ).

BP PLC,. Notice o BP Annual General Meeting 2007 , ( 7), :// .b . /l /b _ / l b lb /S AGING/ _ /IC_SHMV 7_BP_

_ 7. .

B A b ,. Annual General Meeting 2009 , 5 ( ), :// .b . // / __3 . / P W bL /DO57YMK7/$FILE/ MD7QJMDX

? l (A A l G l M A l 5, C EU l l

x bj EU l l ll l l x

.).

N b W G PLC,. Notice o Annual General Meeting 2007 , ( 7),:// . . . / 7. (I l [ ] P C

b l , bl l, x l , ll l l MP , MEP T / 7 llL b l D , 3, C ,3 3 [ ] l , .).

I V PLC,3. Report and Accounts 2008 , 44 ( ), . . . . / /B /? I = 443;see also PLC,Regulatory News , 3 / / , ://

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3 | B C J

. l . / l / / / ? = 4 47 R 3 573X& = _(D , G b 45, 3 ( 7 - 4 , )

l l : L b P 3, 4 ; L b l D5, 5 ; C P 5,7 ; S L b P 5 ; S N

, ; F G l ,3 7; Pl C 45 ; , .).C l I PLC,4. Letter rom the Chairman and Notice o 2008 Annual General Meeting , ( ), :// . l . / /AGM . ;see alsoC lI PLC, C l I l : R l A l G l M( ), :// . l . / /R l % % AGM% . ; R W , C l S R l Pl D , he O ser(J l , ), :// . . . /b / /j l/ / l -

l l- - .

B A ,5. 2008/09 Annual Report and Accounts , 57 ( ), :// .b . / / l b l/ /b _ / /BA_AR_

HMV G PLC,. Annual Report and Accounts 2009 , 4 ( ), :// .. / l / 3 /HMV_ l . .

B b G PLC,7. Annual Report 2008/09 , 57 ( ), :// .bl l ./b b - /B b _ - _A lR . .

Gl x S Kl ,. Political Contributions Policy , ( ), :// . . / b /- /P l -P l l-C b . .

C b PLC,. Annual Report & Accounts 2008 , 55 ( ), :// b .. . /~/ /F l /C/ b - - / / b _ _. x.

. See S Y P A ,South Yorkshire Pension Fund Corporate Governance Policy: Voting Guidelines , 3 ( 5), :// . . . /

b _ bj . ? = 3 7& l b ( l ll l l l l .); L B B xl P F ,Statement o Investment

Principles , 35 ( ), :// . . . /A /B xl / / /S. . ( [ ] [ l

L B S P F ,Statement o Investment Principles , :// . . . /CH H l . x? = 7 & = (W ll

l l b l ll .).

. See supra 7 ;supra .

. See W M l P F ,Corporate Governance Proxy Voting Activity , -( 4), :// . l . / / 4_ 4. .

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B C J| 3

B W b , U L MP P P ,3. he imes (J l , 4):// . l . . / l / ,, - 3 3, . l.

4. Id.

5. See BAA PLC, Annual Report 2004/05 , 47 ( 5), :// . . ///B CP l/S % F l /BAAA lR 4- 5. (BAA l

l . T [ l l 5 M 5 ll

l ...).

P R l , C P l l A b l ,. New Companies Bring Political Disclosure to Nearly Hal o rendsetting S&P 100 , :// . l l b l .

x. ? = /G D A / / 3 .

C P l l A b l ,7. About Us, :// . l l b l . /. ? =4 (W l

CPA l l l l l .).

P R l ,. Inter aith Center on Corporate Responsibility, Religious Investors OpenCampaign to Press Drug Companies to Disclose Political Spending (D . , 4), :// . . / / _ l / 4/ _ b 4. .

S G , C C ,. Mutual Protection: Why Mutual Funds Should Embrace Disclosure o Corporate Political Contributions ( 5), :// . .

/ / /%7BFB3C 7E -CDD -4DF - BE-BD44 3 5%7D/MU UAL%FUND% REPOR % - 5- 5.PDF.

N C F ,. Shareholder Resolutions & Corporate Engagement 2003- 2009 , ( ), :// . . / l / l _

l.

I l b ll . AGM, l b ll l b l l .

. Citizens United v. FEC , N . - 5, l 54 ( ).

T l 3.

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At New York University School o Law