End the Hijacking of Shareholder Funds Act

Bill: 113-hr-1116
Sponsor: full_name: Rep. Grayson, Alan [D-FL-9]
Introduced: 2013-03-13
Policy area: Finance and Financial Sector
Subjects: Business ethics

Civil actions and liability

Corporate finance and management

Elections, voting, political campaign regulation

Financial services and investments

Political advertising

Public participation and lobbying

Securities
Latest action: action_date: 2013-03-13
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2013-03-13
action_desc: Introduced in House
text: <p>End the Hijacking of Shareholder Funds Act - Deems expenditure to influence public opinion by the officers and directors of a public company on matters not related to company products or services to be a breach of fiduciary duty if such expenditure has not been approved by a prior majority shareholder vote.</p> <p>Subjects such officers and directors to joint and several liability to any shareholder or class of shareholders for the amount of such an expenditure.</p>

tv_txt: I 113th CONGRESS 1st Session H. R. 1116 IN THE HOUSE OF REPRESENTATIVES March 13, 2013 Mr. Grayson introduced the following bill; which was referred to the Committee on Financial Services A BILL To require the approval of a majority of a public company’s shareholders for any expenditure by that company to influence public opinion on matters not related to the company’s products or services.

1. Short title This Act may be cited as the End the Hijacking of Shareholder Funds Act . 2. Shareholder approval for certain expenditures Any expenditure by a public company to influence public opinion on matters not related to the company’s products or services that has not been approved by a majority of the votes cast by shareholders to approve or disapprove such expenditure shall be considered a breach of a fiduciary duty of the officers and directors who authorized such an expenditure. The officers and directors who authorize such an expenditure without first obtaining such approval of shareholders shall be jointly and severally liable in any action brought in any court of competent jurisdiction to any shareholder or class of shareholders for the amount of such expenditure. 3. Definitions As used in this Act— (1) the term public company means any issuer that is required to submit periodical or other reports under section 13 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78m ); and (2) the term shareholder means any person who owns or holds a share of stock in a public company.