The Walt Disney Company is facing shareholder demands concerning its dependence on “Communist China,” its charitable contributions and its political expenditure ahead of the media giant’s annual meeting.
The National Legal and Policy Center (NLPC) has submitted a resolution, revealed in Disney’s preliminary proxy statement, calling on the entertainment company to report on its dependence on and vulnerability to “Communist China.”
The NLPC noted that Disney “does business in – and relies on raw materials, finished products, broadcasts, entertainment venues, theme parks, labor and/or services from – entities in China,” and cited concerns with its status described as a “hostile adversary of the U.S.” and an “established serial violator of human and political rights.”
In recommending a vote against the proposal, the board stated the company is “already subject to and compliant with comprehensive and ongoing business-related reporting requirements that require it to inform its shareholders about its international operations.”
Disney shareholders will also vote on a resolution from Thomas Strobhar calling for greater disclosure around the company’s charitable contributions, requesting that the company list on its website any organizations that have been a recipient of more than $10,000 in direct contributions.
Management has also advocated against the proposal stating its belief that “current guidelines and disclosures allow shareholders and other stakeholders to understand our charitable giving strategies and how our giving aligns with these strategies.”
Another led by Rhia Ventures, representing the Educational Foundation of America, calls on Disney to report on its political and electioneering expenditures, with the shareholder arguing Disney’s public LGBTQ support is contradicted by its donations of approximately $200,000 allegedly made to supporters of Florida’s “Don’t Say Gay” law.
However, the board dismissed the need for such a report describing the request as impracticable and “designed to serve the particular interests of the proponent.”
Shareholders will also face a vote on activist Trian Partners’ bid to nominate its founder Nelson Peltz to the board, as well as bylaw changes suggested by the activist.
A date has yet to be announced for the meeting.