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Beyond Accountability

Our friend Steve Milloy is back on the shareholder activist battleground, with a petition before the SEC to change the rules for U.S. shareholders in foreign-based corporations: “The purpose of the petition is to ensure that U.S. investors in certain foreign companies have the same opportunities to participate in corporate governance as the shareholders of domestic companies already enjoy under SEC rules,” said Action Fund Management's Steve Milloy. “U.S. investors should not be relegated by their government to second-class status.” Although this rule is long past due given the increasing involvement of foreign corporations in U.S. domestic affairs, we call this the ‘BP rule,'” said AFM's Tom Borelli. “Given BP's current legal problems that have caused adverse economic and environmental impacts, and advocacy for greenhouse gas regulation, all of which could harm U.S. investors, we consider BP to be the ‘poster child' for what happens when corporate management is distracted from traditional business affairs by a desire to be perceived as “socially responsible,” Borelli added. CEI has had its own issues with SEC rules, of course. Going forward, most of that work is going to be conducted under the aegis of the new Center for Entrepreneurship. --Richard Morrison