Text: H.R.1116 — 113th Congress (2013-2014)All Bill Information (Except Text)

There is one version of the bill.

Text available as:

Shown Here:
Introduced in House (03/13/2013)


113th CONGRESS
1st Session
H. R. 1116

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.


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.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. Short title.

This Act may be cited as the “End the Hijacking of Shareholder Funds Act”.

SEC. 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.

SEC. 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.