NC H653

Corporations incorporated in North Carolina that spend $10,000 or more in aggregate on independent expenditures or electioneering communications must obtain shareholder approval through a separate resolution vote

Shareholder authorization requests must specify a maximum dollar amount for the next 12 months and disclose whether funds will be spent directly by the corporation or paid to nonprofits or trade associations for political activities

A majority of shareholders must approve the authorization, and the vote is binding on the corporation

Corporate directors are jointly and severally liable to repay unauthorized political expenditures to the corporation with 8% annual interest

Effective date is January 1, 2014, applying to elections held on or after that date