In the discussion thread: With all the corporate political contributions, why aren't stockholders hitting the ceiling? [View all]
Response to Frustratedlady (Original post)
Fri Jan 13, 2012, 12:02 PM
jsmirman (4,188 posts)
6. For one, stockholders are generally ignorant
of the things done by the companies they invest in.
How many people really know what's in their portfolio, if you have a portfolio?
Let's say you're invested through a mutual fund. Well then, your purchasing power has been added to that mutual fund, but the mutual fund is purchasing the actual shares and making other investments, so you are at another level of remove from the companies you "hold shares in."
There are ways to find out what your mutual fund is holding/has been holding, but it is an imperfect process (they'll report what they were holding at the end of a quarter, for example, but they move in and out of shares daily, and therefore the report is just an incomplete snapshot).
When it comes to derivative suits, what was said in this thread is not correct - of course they are not frivolous by definition or anything like that. Are they hard to bring, though? Yes, there are some rigorous hoops to be jumped through before you can bring a derivative suit (the toughest one is the process of showing that you've exhausted all efforts to get the company to bring the action on behalf of "itself" (this is why they are called "derivative suits) against the offending conduct).
Shareholder resolutions? The *successful* protest resolutions get maybe 30% support (no winners, just enough weight to get a message out and a pr opportunity).
The easier shareholder suits to bring are *direct* shareholder actions, but these probably aren't an easy fit for these situations. If you could, say, claim fraud in the way these donations are being made and shareholder resources are being distributed (you technically do own the company), you could probably bring a direct shareholder action.
I am interested in a different area of direct shareholder actions, so I don't know exactly what has and hasn't been tried with regard to corporate contributions. But the above, I hope, gives you some picture of some of what the situation is here.
“For all those whose cares have been our concern, the work goes on, the cause endures, the hope still lives, and the dream shall never die.”
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|The Traveler||Jan 2012||#3|
|The Traveler||Jan 2012||#2|
|Sanity Claws||Jan 2012||#5|
For one, stockholders are generally ignorant
|banned from Kos||Jan 2012||#8|
|banned from Kos||Jan 2012||#13|
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|banned from Kos||Jan 2012||#19|
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