Even at this stage in the 2016 election, there is no shortage of presidential candidates to support (or oppose). Many corporate executives are receiving pleas from those candidates for financial support. Executives who seek to be involved in their personal capacities might also be interested in having their corporations support a federal candidate. In this article, which is the second of Allen & Overy’s weekly coverage of political law issues designed to help in-house legal and compliance personnel manage risks, we discuss the three most popular methods of campaign involvement at the federal level. We will also delve into the various prohibitions that apply to corporate political activity, and explain how a company can find itself in violation of the law due to the activities of its employees, even if those activities were engaged in without the company’s knowledge or permission.
Also, keep in mind that states and localities regulate campaign finance issues differently – some are more permissive than federal law (even permitting direct corporate contributions to candidates), while others can be more restrictive.
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