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Corporate Speech, Securities Regulation and an Institutional Approach to the First Amendment

Corporate Speech, Securities Regulation and an Institutional Approach to the First Amendment
Author: Michael R. Siebecker
Publisher:
Total Pages: 63
Release: 2008
Genre:
ISBN:

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Does the First Amendment shield politically tinged corporate speech from the compelled disclosure and reporting requirements embedded in the U.S. securities laws? The question arises in the securities regulation context because of an impending jurisprudential train wreck between the Supreme Court's commercial speech doctrine and its approach to corporate political speech. As corporations begin mixing commercial messages with political commentary, First Amendment jurisprudence simply provides insufficient guidance on the role government should play in regulating that speech. Although First Amendment jurisprudence generally counsels against governmental restrictions on corporate political speech without regard to the truth or falsity of the message, a different branch of that same jurisprudence suggests governmental regulation of commercial speech remains essential to ensure consumers receive accurate information and to maintain market efficiency. Unfortunately, the Supreme Court has never articulated sufficiently clear definitions of quot;commercialquot; or quot;politicalquot; speech, or the boundaries between them, to address claims of politically tinged corporate speech. Because the securities laws essentially operate through content based regulation of compelled speech, which often touches inherently political matters, the securities laws seem especially vulnerable to constitutional attack. Considering the limitations of current speech jurisprudence, this Article examines whether the quot;institutional approachquot; to the First Amendment advocated by Frederick Schauer provides a theoretical basis for maintaining a robust securities regulation regime. Following that approach, a determination of speech rights in any particular institutional setting should depend on an assessment of the societal importance of the institution as well as the relationship between speech rights and the institution's basic role. The Article concludes that an institutional approach to First Amendment jurisprudence not only provides sufficiently strong reasons for insulating the securities regulation regime from the First Amendment's reach, but also lends strong support for embracing a new institutional approach to First Amendment jurisprudence itself.


Corporate First Amendment Rights and the SEC

Corporate First Amendment Rights and the SEC
Author: Nicholas Wolfson
Publisher: Bloomsbury Publishing USA
Total Pages: 185
Release: 1990-10-24
Genre: Law
ISBN: 0313038015

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In the 1970s, the Supreme Court directly ruled for the first time that commercial speech is protected by the free speech clause of the Constitution. The Court, however, did not grant it the full protection afforded to political and artistic speech. The SEC regulates a vast array of corporate speech that it considers to be a type of commercial speech. In this book, Professor Nicholas Wolfson examines the SEC's considerable powers in the control of corporate information and argues that the Court's distinction between political-artistic speech and corporate speech is erroneous. Wolfson demonstrates that much of so-called political speech is concerned with economic self-interest. He finds no fundamental difference between it and corporate speech. In the domain of SEC-regulated speech, he demonstrates that traditional notions of commercial speech do not fit the parameters of SEC-regulated speech. Wolfson proposes that the SEC's regulation of proxy statements, prospectuses, investment advisory literature, and hostile takeover information should be subject to full protection of the First Amendment. He fully delineates the doctrine of commercial speech as well as the court cases that have determined the status of SEC speech. He analyzes the law and economics literature on commercial speech. Finally, Wolfson compares governance of a publicly held corporation to the governance of a political entity, and demonstrates that shareholder democracy is a political notion that should lead to full rights of free speech and freedom of association. This important critique of the regulation of corporate speech will be a valuable reference for securities and corporate lawyers, First Amendment attorneys, and institutional investors, as well as for students in business and law programs. Corporate, law, academic, and public libraries will also find it to be a notable addition to their collections.


What 21st-Century Free Speech Law Means for Securities Regulation

What 21st-Century Free Speech Law Means for Securities Regulation
Author: Helen L. Norton
Publisher:
Total Pages: 0
Release: 2023
Genre:
ISBN:

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Securities law has long regulated securities-related speech--and until recently, it did so with little, if any, First Amendment controversy. Yet the antiregulatory turn in the Supreme Court's 21st-Century Free Speech Clause doctrine has inspired corporate speakers' increasingly successful efforts to resist regulation in a variety of settings, settings that now include securities law. This doctrinal turn empowers courts, if they so choose, to dismantle the securities regulation framework in place since the Great Depression. At stake are not only recent governmental proposals to require companies to disclose accurate information about their vulnerabilities to climate change and other emerging risks, but also longstanding governmental efforts to inform and protect investors while serving broader public interests. This Article takes seriously this threat to the securities law framework and defends that framework's constitutionality. It describes why and how securities law regulates speech to inform and protect investors--functions that also achieve public-regarding goals by facilitating stable and efficient markets, encouraging corporate accountability, and ameliorating the systemic economic risks of market collapse. It then maps this securities law framework onto First Amendment law, demonstrating why and how this regulatory framework aligns with Free Speech Clause theory and doctrine. Key to this alignment are securities law's listener-centered functions.More specifically, this Article makes the case for identifying securities-related speech as a category of speech unprotected by the First Amendment. The Court has long considered the regulation of certain categories of speech as exempt from First Amendment review, and it has more recently announced a backwards-looking methodology for determining those categories that turns on identifying a longstanding regulatory tradition of restricting speech with a category without triggering First Amendment scrutiny. We can trace a lengthy regulatory tradition of responding to the informational asymmetries endemic to securities markets by prohibiting companies from making certain false and misleading statements and by requiring them to make accurate disclosures. This Article demonstrates how securities law remains consistent with this tradition (and thus regulates within a category of unprotected speech) through disclosures that inform investors' diverse approaches for assessing value and risk, including emerging risks like climate change. While maintaining that the securities market is sufficiently distinct from other markets in its susceptibility to information asymmetries to justify recognizing securities-related speech as its own category of unprotected speech, this Article also considers the possibility that the Court will instead turn to an entirely separate doctrine for considering the constitutionality of securities law: the very different rules that apply to the government's regulation of commercial speech. Here too securities regulation's listener-centered functions do important First Amendment work, as much of the securities law framework satisfies review under commercial speech doctrine so long as we continue to tether commercial expression's constitutional protection to that expression's capacity to inform listeners' decisionmaking.


First Amendment Institutions

First Amendment Institutions
Author: Paul Horwitz
Publisher: Harvard University Press
Total Pages: 490
Release: 2013-01-07
Genre: Law
ISBN: 0674070925

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Addressing a host of hot-button issues, from the barring of Christian student groups and military recruiters from law schools and universities to churches’ immunity from civil rights legislation in hiring and firing ministers, Paul Horwitz proposes a radical reformation of First Amendment law. Arguing that rigidly doctrinal approaches can’t account for messy, real-world situations, he suggests that the courts loosen their reins and let those institutions with a stake in First Amendment freedoms do more of the work of enforcing them. Universities, the press, libraries, churches, and various other institutions and associations are a fundamental part of the infrastructure of public discourse. Rather than subject them to ill-fitting, top-down rules and legal categories, courts should make them partners in shaping public discourse and First Amendment law, giving these institutions substantial autonomy to regulate their own affairs. Self-regulation and public criticism should be the key restraints on these institutions, not judicial fiat. Horwitz suggests that this approach would help the law enhance the contribution of our “First Amendment institutions” to social and political life. It would also move us toward a conception of the state as a participating member of our social framework, rather than a reigning and often overbearing sovereign. First Amendment Institutions offers a new vantage point from which to evaluate ongoing debates over topics ranging from campaign finance reform to campus hate speech and affirmative action in higher education. This book promises to promote—and provoke—important new discussions about the shape and future of the First Amendment.


Free Speech and the Regulation of Social Media Content

Free Speech and the Regulation of Social Media Content
Author: Valerie C. Brannon
Publisher: Independently Published
Total Pages: 50
Release: 2019-04-03
Genre: Law
ISBN: 9781092635158

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As the Supreme Court has recognized, social media sites like Facebook and Twitter have become important venues for users to exercise free speech rights protected under the First Amendment. Commentators and legislators, however, have questioned whether these social media platforms are living up to their reputation as digital public forums. Some have expressed concern that these sites are not doing enough to counter violent or false speech. At the same time, many argue that the platforms are unfairly banning and restricting access to potentially valuable speech. Currently, federal law does not offer much recourse for social media users who seek to challenge a social media provider's decision about whether and how to present a user's content. Lawsuits predicated on these sites' decisions to host or remove content have been largely unsuccessful, facing at least two significant barriers under existing federal law. First, while individuals have sometimes alleged that these companies violated their free speech rights by discriminating against users' content, courts have held that the First Amendment, which provides protection against state action, is not implicated by the actions of these private companies. Second, courts have concluded that many non-constitutional claims are barred by Section 230 of the Communications Decency Act, 47 U.S.C. § 230, which provides immunity to providers of interactive computer services, including social media providers, both for certain decisions to host content created by others and for actions taken "voluntarily" and "in good faith" to restrict access to "objectionable" material. Some have argued that Congress should step in to regulate social media sites. Government action regulating internet content would constitute state action that may implicate the First Amendment. In particular, social media providers may argue that government regulations impermissibly infringe on the providers' own constitutional free speech rights. Legal commentators have argued that when social media platforms decide whether and how to post users' content, these publication decisions are themselves protected under the First Amendment. There are few court decisions evaluating whether a social media site, by virtue of publishing, organizing, or even editing protected speech, is itself exercising free speech rights. Consequently, commentators have largely analyzed the question of whether the First Amendment protects a social media site's publication decisions by analogy to other types of First Amendment cases. There are at least three possible frameworks for analyzing governmental restrictions on social media sites' ability to moderate user content. Which of these three frameworks applies will depend largely on the particular action being regulated. Under existing law, social media platforms may be more likely to receive First Amendment protection when they exercise more editorial discretion in presenting user-generated content, rather than if they neutrally transmit all such content. In addition, certain types of speech receive less protection under the First Amendment. Courts may be more likely to uphold regulations targeting certain disfavored categories of speech such as obscenity or speech inciting violence. Finally, if a law targets a social media site's conduct rather than speech, it may not trigger the protections of the First Amendment at all.


The Corporation and the Constitution

The Corporation and the Constitution
Author: Henry N. Butler
Publisher: American Enterprise Institute
Total Pages: 236
Release: 1995
Genre: Law
ISBN: 9780844738659

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The Corporation and the Constitution is a significant contribution to modern constitutional and corporate scholarship. It offers a coherent theory of applying the Constitution to the corporation, and it forces scholars to appreciate the developments that have taken place totally outside the realm of traditional scholarly discourse on the Constitution.


Regulation of Money Managers

Regulation of Money Managers
Author: Tamar Frankel
Publisher: Wolters Kluwer
Total Pages: 4826
Release: 2015-09-16
Genre: Law
ISBN: 145487063X

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The Regulation of Money Managers (with the original subtitle: The Investment Company Act and The Investment Advisers Act) was published in 1978 and 1980. The Second Edition, subtitled Mutual Funds and Advisers, was published in 2001 and has been annually updated since then. It is a comprehensive and exhaustive treatise on investment management regulation. The treatise covers federal and state statutes, their legislative history, common law, judicial decisions, rules and regulations of the Securities and Exchange Commission, staff reports, and other publications dealing with investment advisers and investment companies. The treatise touches on other financial institutions such as banks, insurance companies, and pension funds. The work also discusses the economic, business, and theoretical aspects of the investment management industry and their effects on the law and on policy. The treatise contains detailed analysis of the history and development of the Investment Company Act and the Investment Advisers Act. It examines the definitions in the Acts, including the concept of ‘‘investment adviser,’’ ‘‘affiliates,’’ and ‘‘interested persons.’’ It outlines the duties of investment company directors, the independent directors, and other fiduciaries of investment companies. The treatise deals with the SEC’s enforcement powers and private parties’ rights of action.


We the Corporations: How American Businesses Won Their Civil Rights

We the Corporations: How American Businesses Won Their Civil Rights
Author: Adam Winkler
Publisher: Liveright Publishing
Total Pages: 485
Release: 2018-02-27
Genre: Law
ISBN: 0871403846

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National Book Award for Nonfiction Finalist National Book Critics Circle Award for Nonfiction Finalist A New York Times Notable Book of the Year A Washington Post Notable Book of the Year A PBS “Now Read This” Book Club Selection Named one of the Best Books of the Year by the Economist and the Boston Globe A landmark exposé and “deeply engaging legal history” of one of the most successful, yet least known, civil rights movements in American history (Washington Post). In a revelatory work praised as “excellent and timely” (New York Times Book Review, front page), Adam Winkler, author of Gunfight, once again makes sense of our fraught constitutional history in this incisive portrait of how American businesses seized political power, won “equal rights,” and transformed the Constitution to serve big business. Uncovering the deep roots of Citizens United, he repositions that controversial 2010 Supreme Court decision as the capstone of a centuries-old battle for corporate personhood. “Tackling a topic that ought to be at the heart of political debate” (Economist), Winkler surveys more than four hundred years of diverse cases—and the contributions of such legendary legal figures as Daniel Webster, Roger Taney, Lewis Powell, and even Thurgood Marshall—to reveal that “the history of corporate rights is replete with ironies” (Wall Street Journal). We the Corporations is an uncompromising work of history to be read for years to come.


Democracy, Expertise, and Academic Freedom

Democracy, Expertise, and Academic Freedom
Author: Robert C. Post
Publisher: Yale University Press
Total Pages: 153
Release: 2012-01-24
Genre: Law
ISBN: 030014864X

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A leading American legal scholar offers a surprising account of the incompleteness of prevailing theories of freedom of speech. Robert C. Post shows that the familiar understanding of the First Amendment, which stresses the "marketplace of ideas" and which holds that "everyone is entitled to an opinion," is inadequate to create and preserve the expert knowledge that is necessary for a modern democracy to thrive. For a modern society reliably to answer such questions as whether nicotine causes cancer, the free and open exchange of ideas must be complemented by standards of scientific competence and practice that are both hierarchical and judgmental.Post develops a theory of First Amendment rights that seeks to explain both the need for the free formation of public opinion and the need for the distribution and creation of expertise. Along the way he offers a new and useful account of constitutional doctrines of academic freedom. These doctrines depend both upon free expression and the necessity of the kinds of professional judgment that universities exercise when they grant or deny tenure, or that professional journals exercise when they accept or reject submissions.


Truth and Transparency

Truth and Transparency
Author: Alan K. Chen
Publisher: Cambridge University Press
Total Pages: 299
Release: 2023-08-31
Genre: Law
ISBN: 1108665594

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Undercover investigators have been celebrated as critical conduits of political speech and essential protectors of transparency. They have also been derided as intrusive and spy-like, inconsistent with private property rights, and morally or ethically questionable. In Truth and Transparency, Alan K. Chen and Justin Marceau rigorously examine this duality and seek to provide a socio-legal context for understanding these varying views. The book concretely defines undercover investigations, distinguishes the practice from investigative journalism and whistleblowing, and provides a comprehensive legal history. Chapters explore the public need for investigations and the rights of investigators, paying close attention to the types of investigations that fall beyond the scope of constitutional protection. The book also provides concrete empirical evidence of the broad, bipartisan support for undercover investigations and champions the practice as an essential com-ponent of the transparency our democracy needs to thrive.