By Patrick Crowley
The Cincinnati Enquirer

Voters may have a difficult time figuring out how Amendment No. 2 changes the Kentucky Constitution simply by reading the language printed on the Nov. 5 ballot.

If Issue 2 is approved, 11 sections of the state constitution dealing with corporate regulations would be repealed. Proponents say the 100-year-old regulations are outdated and keeping companies from expanding or locating in Kentucky.

The change to the constitution is being pushed by Kentuckians for Employment and Economic Progress, a coalition of hundreds of businesses and the Northern Kentucky Chamber of Commerce.

Covington-based Ashland Inc. has contributed $2.8 million to a campaign urging voters to pass the amendment.

"Constitutional Amendment Number Two is vital to improving our state's economy," said Ashland spokesman Stan Lampe. "It will help Kentucky compete for good jobs for our children."

Among the sections the amendment would repeal is one requiring Kentucky corporations to use real estate for their business within five years of purchasing it or turn it over to the state.

Others to be repealed regulate the sale of stock, prohibit the kind of businesses corporations can engage in and prohibit companies from communicating electronically with their shareholders.

"This amendment helps bring Kentucky into the time and realities of today," said historian Dr. Thomas Clark, a member of the coalition promoting the amendment.

Organized labor in Kentucky opposes the amendment, said Bill Londrigan, president of the Kentucky State AFL-CIO.

"In general it goes against the direction we should be moving in this country and in Kentucky right now," Mr. Londrigan said. "It's a step backward in terms of corporate governance. With all the corporate scandals we've seen we don't need less regulation and oversight of corporate America ... especially in this time of corporate greed."

Labor is also concerned that shareholders' rights will be diminished if the amendment passes. One of the old provisions some larger businesses would like to see repealed allows minority shareholders to vote in some circumstances in bigger blocks than majority shareholders.

"Amendment Two ... calls for the repeal of constitutional provisions that ensure some level of corporate restraint and accountability," Mr. Londrigan said. "Repealing these long-held and needed restraints would be a mistake."

E-mail pcrowley@enquirer.com

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