The U.S. House Financial Services Committee approved “The Shareholder Protection Act of 2010”, (H.R. 4790) last week. This legislation is a second response by the Democratic leadership to the Citizens United v. FEC case, which the Supreme Court decided earlier this year.

The bill requires shareholders of corporations to vote on the total political expenditures the corporation would make in the fiscal year with the requirement outlined in their bylaws language requiring a majority vote of approval on political expenditures in excess of $50,000. There is concern that the bill language includes “dues or other payments to trade associations” in the definition of political expenditures and that this would require dues to associations that engage in political activity to be subject to shareholder votes. H.R. 4790 is expected to be passed by the U. S. House.

MSAE will communicate to the Michigan members of the House of Representatives about our concerns on this language. We invite you to also express concern. They are currently home for the summer recess.