0
Protecting Americans from Corporate Human Rights Abusers Act
12/31/2022, 8:59 AM
Summary of Bill HR 5286
The bill aims to achieve this by allowing US citizens to sue corporations in US courts for human rights violations committed abroad. This would provide a legal avenue for victims of corporate abuse to seek justice and compensation for the harm they have suffered.
Additionally, the bill would require corporations to disclose any human rights violations they have committed in their annual reports to the Securities and Exchange Commission. This increased transparency would help to prevent future abuses and hold corporations accountable for their actions. Overall, the Protecting Americans from Corporate Human Rights Abusers Act seeks to ensure that US corporations are held to a higher standard when operating overseas and that victims of human rights abuses have a way to seek justice.
Congressional Summary of HR 5286
Protecting Americans from Corporate Human Rights Abusers Act
This bill prohibits transactions in the securities of certain Chinese entities.
The Department of State must report to Congress a list identifying entities incorporated in China that have a presence in U.S. capital markets and (1) are responsible for or complicit in gross violations of human rights in China; (2) pose an unusual or extraordinary threat to U.S. national security, foreign policy, or economic interests; or (3) pose an increased financial risk exposure to U.S.-based investors.
A U.S. entity or individual may not purchase or sell the publicly traded securities (or derivatives of such securities) of (1) the entities on the above list; or (2) certain entities that have been designated as Communist Chinese military companies or Chinese military-industrial complex companies.
The bill provides certain exceptions for transactions that are made solely for the purpose of divesting in such securities.
The bill prohibits judicial review of certain actions related to this bill, including a decision by the State Department to list a company as one that is responsible for gross human rights violations in China.
