Transparency in Corporate Political Spending and SEC Rule 14a-8

Germain DeMartinis and Kathy Jaffari authored an article in The Legal Intelligencer on the increased focus on political contributions made by companies and the need for these businesses to have increased transparency in order to manage reputational risk. With the money for political contributions ultimately coming out of shareholders’ pockets, shareholders have long expressed their concern about how and what amount of funds are allocated. The article looks at recent amendments to Rule 14a-8 which, historically allowed eligible shareholders to submit proposals for inclusion in the annual proxy statement to be voted upon by shareholders, but a new amendment has raised the requirements for eligible shareholder proposals as well as potential litigation exposure for companies.

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Germain E. DeMartinis

Associate

gdemartinis@cozen.com

(215) 665-5535

Katayun Jaffari

Chair, Corporate Governance & Securities

kjaffari@cozen.com

(215) 665-4622


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