On Monday a three-judge panel of the U.S. Court of Appeals for the Third Circuit gave Wal-Mart Stores Inc. a win against shareholders concerned about the company’s sales of assault rifles, ruling that Wal-Mart can refuse to put to a vote a proposal calling for firmer board oversight of gun sales.
Trinity Wall Street, New York City’s historic Episcopal parish and an owner of Wal-Mart stock, went to court last year calling for the company to allow shareholders to vote on whether the board should apply standards around decisions to sell rifles with high-capacity magazines and other products that could endanger public safety and the company’s reputation. Though the federal appeals court decided the proposal interfered with the company’s “ordinary business operations,” the ruling focused on questions around corporate governance and investor involvement with hot-button issues.
