General Motors – Disclosure of Political Contributions (2006 – 2007)
Outcome: Omitted by SEC
Resolved, that the shareholders of General Motors (“GM” or “the Copmany”) hereby request that the Company provide a report, updated semi-annually, disclosing GM’s:
| 1. | Policies and procedures for political contributions and expenditures (both direct and indirect) made with corporate funds. |
| 2. | Monetary and non-monetary political contributions and expenditures not deductible under section 162 (e)(1)(B) of the Internal Revenue Code, including but not limited to contributions to or expenditures on behalf of political candidates, political parties, political committees and other political entities organized and operating under 26 USC Sec. 527 of the Internal Revenue Code and any portion of any dues or similar payments made to any tax exempt organization that is used for an expenditure or contribution if made directly by the corporation would not be deductible under section 162 (e)(1)(B) of the Internal Revenue Code. The report shall include the following: |
| a. | An accounting of GM’s funds that are used for political contributions or expenditures as described above; |
| b. | Identification of the person or persons in GM who participated in making the decisions to make the political contribution or expenditure; and |
| c. | The internal guidelines or policies, if any, governing the GM’s political contributions and expenditures. |
The report shall be presented tothe board of directors’ audit committee or other relevant oversight committee and posted on the company’s website to reduce costs to shareholders.
Stockholder Supporting Statement As long-term shareholders of GM, we support transparency and accountability in corporate spending on political activities. These activities include direct and indirect political contributions to candidates, political parties or political organizations; independent expenditures; or electioneering communications on behalf of a federal, state or local candidate. Disclosure is consistent with public policy and in the best interest of GM and its shareholders. Absent a system of accountability, company assets can be used for policy objectives that may be inimical to the long-term interests of and may pose risks to GM and its shareholders. GM contributed at least $124,890 and possibly more in corporate funds since the 2002 election cycle. (PoliticalMoneyLine: http://www.fecinfo.com/cgi-win/irs_ef_indiv.exe?) However, its payments to trade associations used for political activities are undisclosed and unknown. Trade Associations engage in political activities that may adversely impact the long-term interests of the company and its shareholders and the company’s reputation. A critical issue is global warming which can have serious consequences for GM. For example, the National Association of Manufacturers (NAM) continues to take a strong position against government action on global warming. Without disclosure, it is impossible for shareholders to know whether GM is a member of NAM or other associations, and if so how GM’s payments to associations are used for political activities, including those opposing government action on global warming. Relying on publicly available data does not provide a complete picture of political expenditures. GM’s board and shareholders need complete disclosure to be able to fully evaluate the political use of corporate assets. Thus, we urge your support for this critical governance reform.
