An upcoming lawsuit over firearms filed against Wal-Mart could have big implications on the future of corporate governance.
New York City’s Trinity Church is suing Wal-Mart over not allowing shareholders to vote on a resolution related to gun sales, the Wall Street Journal reports.
The resolution also included other items Trinity deemed “offensive to family and community values.”
Trinity, a relatively small Wal-Mart shareholder, submitted a resolution in 2013 for shareholders to vote on whether or not the company should stop selling certain firearms, according to the Christian Post. Wal-Mart requested the Securities and Exchange Commission allow them to exclude the measure, and the SEC allowed it, leading Trinity to sue. The issue is expected to be heard in appeals court next month.
How that court decides, however, could have a major impact on the balance of power between corporations and their shareholders. From the Journal:
Wal-Mart sells firearms at less than half of its stores in the U.S. In its most recent earnings report, Wal-Mart posted earnings-per-share of $5.07 and $485.7 billion in revenue for 2014.