Fairfax, Va. -U.S. Senator Marco Rubio (R-FL) introduced the Mind Your Own Business Act, which would enable shareholders to hold woke corporations accountable.
Americans for Limited Government President Richard Manning issued the following statement in support of the measure:
“Woke corporations seem to be jumping over each other to prove who is willing to give more money or change corporate direction to accommodate a loud group of far left activists who are characterized as ‘stakeholders.’ Senator Marco Rubio has introduced legislation which would require these corporations to justify these actions based upon the fiduciary responsibility they have to shareholders (who actually are the owners of the company and have an expectation that profit will be the primary focus).
“Americans for Limited Government strongly supports Senator Rubio’s leadership on this important issue. Pensioners, those who hope to retire someday and other investors have a right to expect that the company’s they own are acting in their interests and not being the pawns of people whose goal is to destroy the free market system.”
Specifically, the legislation would require corporate directors to prove their “woke” corporate actions were in their shareholders’ best interest in order to avoid liability for breach of fiduciary duty in shareholder litigation over corporate actions relating to certain social policies. It would also incentivize corporate management to stop abusing their positions to advance left-wing social policies by increasing their personal liability to shareholders for breaches of fiduciary duty resulting from those policies.
For more on the Mind Your Own Business Act, read Rubio’s guest column in Fox Business News.