Muskan P, B.A.LL.B.(Hons.), Damodaram Sanjivayya National Law University, Vishakhapatnam
ABSTRACT
In today's date, Finance to a political party is imperative for their campaign during the time of elections for a public office; and corporate companies have been one of the prime sources of such contributions. Shareholders can always bring a suit when the directors of a company donate money to a political party or a political action committee supporting the candidate for an election on the grounds of not in the interests of the company. What the court will do is the crucial question. Joseph K Leahy in the article analyzed different cases of the United States Courts, explained the different tests, namely business judgment rule and rule of intermediate scrutiny that are applied and his opinion on these tests.
In this Article, the Author has analyzed and provided a critique of Joseph K Leahy's article "Intermediate Scrutiny for Corporate Political Contributions" and studied the current Indian Legal Regime on it concerning the directors of a company. The Author had attempted to explain Leahy's view on the US court's application for a new test of "intermediate scrutiny" to a corporate political contribution over the popular business-judgment rule when doubt of self-interest arose. Further, an effort was made if the afore-said tests are followed in India.
