Last week, the House Financial Services Committee passed the H.R. 4790, the Shareholder Protection Act of 2010. The legislation will amend the Securities Exchange Act to require shareholder approval before a publicly traded company may engage in political speech.
The types of political activities requiring shareholder approval include independent expenditures, political contributions, electioneering communications, and dues or other payments to trade associations and other nonprofits that may sponsor independent expenditures.
It appears that Congressional Democrats are continuing their quest to chill political speech sponsored by their issue opponents in the business community. The U.S. Chamber of Commerce opposes this legislation.