Political party donations and corporate largesse in donating big sums to charity are being put under scrutiny by the Shareholders Association, which is concerned that managers and directors are not asking their shareholders first.
Shareholders Association member Graeme Bulling, of Auckland, has put two resolutions to Contact Energy shareholders attheir annual meeting in Wellington next month.
While he is not acting on behalf of the association, Bulling has its backing in his attempt to get Contact's board to seek shareholder approval before making political donations.
Contact paid out $90,000 to political parties last year, in proportion to their seats in Parliament.
Bulling is also asking that all donations and sponsorships are specified and disclosed in Contact's annual report.
Association chairman Bruce Sheppard said the association fully supported members like Bulling who raised the topic.
Donations to political parties were "one step away from corruption", and if other donations began eating up earnings, the association would take more action.
Bulling told the Business Herald that it should be up to shareholders, not company directors and managers, to support political parties. The democratic process was not in any risk of failure in New Zealand.
Contact justifies its donations as "supporting the democratic process of government."
Latest disclosures from the Electoral Commission for 2003 show Contact's donations included $39,000 to the Labour Party, $20,000 to National and $10,000 to New Zealand First.
Contact spokesman Pattrick Smellie said the company was being transparent and fair about its donations when other companies paid similar money out of hidden trusts to avoid identification.
Donations
* Contact: $90,000 a year split among all the parties.
* Westpac: $15,000 each to National and Labour last year, but gives to all elected parties.
* Telecom: says it gives "across the spectrum" but won't say to who, or how much.
* Sky City: $40,000 to each of the main parties last election and $10,000 to smaller parties.
* Carter Holt: used to donate, but stopped after last election.
