The Companies (EU Political Expenditure) Exemption Order 2001

Explanatory Note

(This note is not part of the Order)

This Order exempts certain types of EU political expenditure incurred by companies and subsidiary undertakings of the description specified in the Order from the requirement for it to be approved by the company incurring the expenditure under section 347C of the Companies Act 1985 or by the holding company of the company or subsidiary undertaking incurring the expenditure under section 347D or E of the Companies Act 1985.

The description of EU political expenditure so exempted as set out in Article 4 comprises any expenditure incurred by a company or subsidiary undertaking in respect of the preparation, publication or dissemination of such material as is specified in Article 3(1) where that material contains matter which would render that preparation, publication or dissemination on the part of the company or subsidiary undertaking an activity of that company or subsidiary undertaking within the meaning of section 347A(5)(b) of the Companies Act 1985.

The description of the company or subsidiary undertaking incurring such expenditure as set out in Article 3 comprises any company or subsidiary undertaking whose ordinary course of business includes, or is proposed to include, the preparation, publication or dissemination to the public, or any part of the public of material relating to news and public and political affairs and events and to views, opinion and comment on the news and on public and political affairs and events.

The exemption only operates where the type of expenditure as described in Article 3 is incurred by a company or subsidiary undertaking as described in Article 3.