Meng Blasts SEC for Not Requiring Corporations to Disclose Political Spending to Shareholders

U.S. Rep. Grace Meng (D-NY) today blasted the Securities and Exchange Commission (SEC) for removing a plan from its rulemaking agenda that would have required corporations to disclose their political spending to shareholders. Meng is the sponsor of legislation, the Corporate Politics Transparency Act (H.R. 2214), that would accomplish the same goal.

"The SEC's decision is extremely disappointing," said Meng. "The agency had a prime opportunity to address a problem caused by the Citizens United case. But instead of creating the transparency that should exist, the SEC is allowing corporate executives to be shielded from accountability."

"While the SEC's decision is a setback, we will not stop our efforts to hold corporations accountable," added Meng. "Shareholders have a right to know how their money is being spent, and we will continue to keep up the fight."

Meng's bill, introduced last May, would require publicly-traded companies to inform shareholders of all the money they spend supporting or opposing candidates for federal, state and local office, including all independent expenditures, electioneering communications and political donations over $10,000 made to outside groups.

The Citizens United case was a Supreme Court decision in 2010 (Citizens United v. Federal Election Commission) which ruled that corporations have the same First Amendment rights as American citizens to independently spend unlimited amounts of money for or against candidates seeking public office.