Abstract
LL.M. (Corporate Law)
The regulation of the funding of political parties and activities by corporations (corporate political spending) in the US, Canada and UK was in response to the negative and corrupting effects such funding had on governments and the integrity of elections in these countries. However, through various court challenges, there has been a gradual move away from some of the restrictions brought about by this regulation, with the US now allowing unrestricted corporate political spending. Canada on the other hand has placed funding limits on corporate political spending whilst the UK requires disclosure of such spending and shareholder consent. Funding of political parties and political activities by companies in the US, Canada and UK is only permitted to companies registered in the respective countries.
South Africa on the other hand, currently has no restrictions on corporate political spending, save for self-imposed restrictions by companies through their memorandums of incorporation. However, recent developments in South Africa, a response to general concerns about the effects of corporate political spending on the integrity of the country’s democracy and electoral processes and possible links between the prevailing high levels of corruption and corporate political spending have raised concerns and a need for some regulation of corporate political spending in the country.
Informed by developments in the US, Canada and the UK, this dissertation proposes that South Africa should, through the Companies Act, require public disclosure of corporate political spending and shareholder consent for such spending. The amendment of the Promotion of Access to Information Act 2 of 2000 and the Electoral Commission Act 51 of 1996 could also address the issue of the disclosure of corporate political spending but would not necessarily address the interests of shareholders and stakeholders in corporate political spending decisions.