§ 5526 Corporate Campaign Expenditure Limits

• •A company can't spend its money to support someone running for a director position if there are more people running than there are spots available.
• •The company's board must give permission before any money is spent to support a nominee for director.
• •This rule helps keep things fair when too many people want to be directors.

Imagine a company has 3 open spots for directors, but 5 people want to be directors. The company wants to spend money to help one of these 5 people get elected.

The company can't spend its money to help any of these 5 people unless the board says it's okay. This makes sure the company doesn't play favorites without everyone agreeing.