C6C1C5Part 14Control of political donations and expenditure

Annotations:
Modifications etc. (not altering text)
C6

Pts. 1-39 modified (31.12.2020) by Regulation (EC) No. 2157/2001, Art. AAA1(3) (as inserted by The European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1298), regs. 1, 97 (with regs. 140-145) (as amended by S.I. 2020/523, regs. 1(2), 5(a)-(f)); 2020 c. 1, Sch. 5 para. 1(1))

C1

Pt. 14 applied (with modifications) (1.10.2009) by The Unregistered Companies Regulations 2009 (S.I. 2009/2436), regs. 3-5, Sch. 1 para. 16 (with transitional provisions and savings in regs. 7, 9, Sch. 2)

Authorisation required for donations or expenditure

I1C2366Authorisation required for donations or expenditure

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.

I2C3367Form of authorising resolution

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.

I3C4368Period for which resolution has effect

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.