Bill HB 5556 Intrusive to Corporate Governance

The business community is applauding Governor Malloy's veto of a campaign finance bill (HB 5556) that would have imposed unreasonable rules and procedures on Connecticut businesses making campaign-related expenditures.

"At a time when we want to promote the idea of an open and welcoming business climate in the state, this bill would have caused unprecedented intrusions into corporate governance," says John Rathgeber, president and CEO of the Connecticut Business & Industry Association (CBIA). "It also would have infringed on the constitutional right to freedom of speech."

Under the proposal, companies doing business in, organized in, or operating in Connecticut would have been required to notify their shareholders of certain political campaign-related spending and obtain prior approval from their governing body for any and all campaign-related disbursements over $4,000.

The bill also would have forced companies to post on their websites the actual votes of their governing body, including the names of the voting individuals and how they voted.

"In this period of slow economic recovery, policymakers need to make sure to avoid any measures that would dampen Connecticut's business environment and diminish employers' confidence in the state as a place to grow, expand operations, and create jobs," adds Rathgeber.

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CBIA is Connecticut's largest business organization, with 10,000 member companies. For more information, please contact Meaghan MacDonald (860.244.1957; meaghan.macdonald@cbia.com) or visit cbia.com/newsroom.