This proposal could impact the business and operations of public companies and, some argue, could discourage corporate and individual participation in the political process. The Committee’s proposal would not apply to privately held companies. If this petition develops into a proposed rule, a public comment period and opportunities for stakeholders to share their concerns for the proposed rule will be provided as the SEC considers the petition.

The Congress may look in to this matter during the upcoming fall session. It is worth noting that publicly held companies are allowed to make political contributions in twenty-eight (28) states.

We suggest that interested companies and individuals remain aware of the developments with regard to this issue. If you would like further information or advice specific to your business, please contact us. Please follow this link to download a copy of the Committee’s petition.