Beverly Hills Chamber Gives Smaller Firms a Bigger Voice

In an effort to give smaller businesses a greater voice in its affairs, the Beverly Hills Chamber of Commerce has decided to limit the voting power of big banks and other institutions in elections for its board of directors.

The motion passed unanimously and without debate at a sparsely attended breakfast meeting Thursday, but Charles Reilly, the newly installed president of the chamber, said it had been the result of more than 10 hours of stormy debate.

“We met at least five or six times and, as you might imagine, at its initial meeting you had a number of people with very diverse and very divergent views on the subject, and all of them very strongly felt,” he said. Reilly is managing general partner of Shamrock Investments.

In the end, the committee agreed to amend the chamber’s bylaws to limit to 10 the number of votes that can be wielded by any member business. Previously, voting power depended on the amount of dues a business paid. Dues are assessed by the chamber on the basis of such factors as the number of employees, in the case of hotels and department stores, or the size of deposits, in the case of banks.

System Called Unfair

Representatives of two merchant groups in outlying areas of the city had said this amounted to unfair domination by the larger firms and protested that it violated the guidelines laid down by the U.S. Chamber of Commerce.

During the negotiations that followed, the smaller businesses initially asked for a three-vote limit, but ended up agreeing to the 10-vote limit proposed by the national organization. Banks will be allowed one additional vote for each branch office.

The chamber also decided to expand the representation of smaller businesses on its board of directors by inviting representatives of groups such as the Art Gallery Assn., the Restaurant Assn., the Robertson Boulevard Assn. and the South Beverly Drive Business Assn. to join the 23-member panel, Reilly said.

“Our purpose is to enhance and broaden involvement, and to help groups whose views have not been heard to get them heard, because in the final analysis if the chamber is to be effective, it’s got to find ways to acknowledge the needs and desires of its members,” he said.

‘Wait and See’ Response

Russ Levi, a wine store owner on South Beverly Drive who was one of the early challengers of the chamber’s voting procedures, said he welcomed Reilly’s attitude but would “wait and see.”

“I thought the reformers on the committee were quite liberal to agree to a 10-vote maximum,” Levi said. “However, it’s not the voting system that is the obstacle to change but the self-indulgent attitudes of so many of the chamber board.”

The chamber is a 67-year-old organization that seeks business for the city, promotes the city’s image and plays a role in city planning.

Levi and other challengers had said the board failed in the past to represent their interests when planning promotions such as shopping maps and Christmas decorations.