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Companies Act 2006

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Companies Act 2006, Cross Heading: Authorisation required for donations or expenditure is up to date with all changes known to be in force on or before 22 October 2017. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

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Changes and effects

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  • Act amendment to earlier affecting provision S.I. 2008/373 reg. 11(1) by S.I. 2013/1971 reg. 9(a) (This amendment not applied to legislation.gov.uk. Amending Regulations revoked (1.10.2013) without ever being in force by S.I. 2013/2224, reg. 2)
  • Act amendment to earlier affecting provision S.I. 2008/373 reg. 3(4) by S.I. 2013/1971 reg. 4 (This amendment not applied to legislation.gov.uk. Amending Regulations revoked (1.10.2013) without ever being in force by S.I. 2013/2224, reg. 2)

Whole provisions yet to be inserted into this Act (including any effects on those provisions):

Authorisation required for donations or expenditureE+W+S+N.I.

366Authorisation required for donations or expenditureE+W+S+N.I.

(1)A company must not—

(a)make a political donation to a political party or other political organisation, or to an independent election candidate, or

(b)incur any political expenditure,

unless the donation or expenditure is authorised in accordance with the following provisions.

(2)The donation or expenditure must be authorised—

(a)in the case of a company that is not a subsidiary of another company, by a resolution of the members of the company;

(b)in the case of a company that is a subsidiary of another company by—

(i)a resolution of the members of the company, and

(ii)a resolution of the members of any relevant holding company.

(3)No resolution is required on the part of a company that is a wholly-owned subsidiary of a UK-registered company.

(4)For the purposes of subsection (2)(b)(ii) a “relevant holding company” means a company that, at the time the donation was made or the expenditure was incurred—

(a)was a holding company of the company by which the donation was made or the expenditure was incurred,

(b)was a UK-registered company, and

(c)was not a subsidiary of another UK-registered company.

(5)The resolution or resolutions required by this section—

(a)must comply with section 367 (form of authorising resolution), and

(b)must be passed before the donation is made or the expenditure incurred.

(6)Nothing in this section enables a company to be authorised to do anything that it could not lawfully do apart from this section.

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Modifications etc. (not altering text)

C1Ss. 362-379 applied (with modifications) (1.10.2009) by The Unregistered Companies Regulations 2009 (S.I. 2009/2436), regs. 3-5, Sch. 1 para. 9 (with transitional provisions and savings in regs. 7, 9, Sch. 2)

Commencement Information

I1S. 366 wholly in force at 1.10.2008; s. 366 not in force at Royal Assent see s. 1300; s. 366 in force for certain purposes at 1.10.2007 (E.W.S.) and 1.11.2007 (N.I.) and in force otherwise at. 1.10.2008 by S.I. 2007/2194, arts. 2(2), 3(1), 5(1)(g) (with saving in art. 12 and with transitional provisions and savings in Sch. 3)

367Form of authorising resolutionE+W+S+N.I.

(1)A resolution conferring authorisation for the purposes of this Part may relate to—

(a)the company passing the resolution,

(b)one or more subsidiaries of that company, or

(c)the company passing the resolution and one or more subsidiaries of that company.

(2)A resolution may be expressed to relate to all companies that are subsidiaries of the company passing the resolution—

(a)at the time the resolution is passed, or

(b)at any time during the period for which the resolution has effect,

without identifying them individually.

(3)The resolution may authorise donations or expenditure under one or more of the following heads—

(a)donations to political parties or independent election candidates;

(b)donations to political organisations other than political parties;

(c)political expenditure.

(4)The resolution must specify a head or heads—

(a)in the case of a resolution under subsection (2), for all of the companies to which it relates taken together;

(b)in the case of any other resolution, for each company to which it relates.

(5)The resolution must be expressed in general terms conforming with [F1subsection (3)] and must not purport to authorise particular donations or expenditure.

(6)For each of the specified heads the resolution must authorise donations or, as the case may be, expenditure up to a specified amount in the period for which the resolution has effect (see section 368).

(7)The resolution must specify such amounts—

(a)in the case of a resolution under subsection (2), for all of the companies to which it relates taken together;

(b)in the case of any other resolution, for each company to which it relates.

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

Modifications etc. (not altering text)

C2Ss. 362-379 applied (with modifications) (1.10.2009) by The Unregistered Companies Regulations 2009 (S.I. 2009/2436), regs. 3-5, Sch. 1 para. 9 (with transitional provisions and savings in regs. 7, 9, Sch. 2)

Commencement Information

I2S. 367 wholly in force at 1.10.2008; s. 367 not in force at Royal Assent see s. 1300; s. 367 in force for certain purposes at 1.10.2007 (E.W.S.) and 1.11.2007 (N.I.) and in force otherwise at. 1.10.2008 by S.I. 2007/2194, arts. 2(2), 3(1), 5(1)(h) (with saving in art. 12 and with transitional provisions and savings in Sch. 3)

368Period for which resolution has effectE+W+S+N.I.

(1)A resolution conferring authorisation for the purposes of this Part has effect for a period of four years beginning with the date on which it is passed unless the directors determine, or the articles require, that it is to have effect for a shorter period beginning with that date.

(2)The power of the directors to make a determination under this section is subject to any provision of the articles that operates to prevent them from doing so.

Annotations: Help about Annotation
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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Modifications etc. (not altering text)

C3Ss. 362-379 applied (with modifications) (1.10.2009) by The Unregistered Companies Regulations 2009 (S.I. 2009/2436), regs. 3-5, Sch. 1 para. 9 (with transitional provisions and savings in regs. 7, 9, Sch. 2)

Commencement Information

I3S. 368 wholly in force at 1.11.2007; s. 368 not in force at Royal Assent see s. 1300; s. 368 in force at 1.10.2007 (E.W.S.) and at 1.11.2007 (N.I.) by S.I. 2007/2194, arts. 2(2), 3(1), (with saving in art. 12 and with transitional provisions and savings in Sch. 3)

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