January 28, 2010
Citizens United and the Issue of Shareholder Protection
Over at the Glom, Usha Rodrigues opines that:
The shareholder protection rationale has real traction in the public company context, and I find Kennedy's reliance on the protections of shareholder democracy laughable ....
Meanwhile, Larry Ribstein feels that:
the shareholder protection rationale for corporate speech restrictions ... ignores the powerful market forces that discipline the terms of state corporation laws.
Personally, I don't think shareholder protection constitutes an independent compelling interest justifying the regulation of speech. But when one combines shareholder protection concerns with antidistortion and anticorruption concerns--a compelling interest arguably begins to emerge.