Rubio Targets ‘Awakened’ Companies with New Bill Giving More Power to Shareholders to Fight Back
The legislation dubbed “Pay attention to your own business law“, was presented by the senator Thursday in response to large companies taking political positions that could go against the beliefs of shareholders.
SEN. MARCO RUBIO: THIS IS HOW WE FIGHT THE ELITES WAKE RUNNING CORPORATE AMERICA
âIf you own a stock, invest in a mutual fund, have a company sponsored 401k, then you are a shareholder and the companies you invest in have legal obligations,â Rubio wrote in an op-ed for Fox. Business.
The Florida Republican pointed to controversial actions taken by companies like Nike and Coca-Cola that have relied on their importance to consumers to take political positions.
Rubio said Gillette also cost its parent company “billions of dollars in revenue” following a backlash against a 2019 ad that sought to highlight “toxic masculinity.”
The senator argued that his legislation “will empower shareholders to act when a company follows the latest Marxist fashions: boycott a state, deny services to politically disadvantaged groups, or restructure their workforce to advance concepts such as the critical theory of race “.
Rubio’s legislation would require companies to prove that any political position taken was in the best interests of their shareholders.
If the entity did not prove the interests of the shareholders, the corporate officers would be held personally liable.
The senator said this step was critical to ensuring accountability.
Under current laws, shareholders are already able to sue company executives when the actions are politically motivated rather than fiscally motivated.
“But companies have stacked the bridge to make these lawsuits hopeless. They are changing the provisions of their statutes to protect themselves as they leave America behind,” said Rubio.
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The GOP senator said his bill would not increase government regulation, but instead allow shareholders to counter corporate policy in the social sphere.
“It is time for us the people to take back our power from the crowds and weak corporate leaders who bow down to the Marxists,” he added.