Political Parties, Elections and Referendums Act 2000 (c. 41)

(The document as of February, 2008)

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(a) make donations to EU political organisations not exceeding in total a sum specified in the resolution, or

(b) incur EU political expenditure not exceeding in total a sum so specified,

during the requisite period beginning with the date of the resolution.

(4) Subsection (3) of section 347C shall apply for the purposes of subsection (3) above as it applies for the purposes of subsection (2) of that section.

(5) The resolution must be expressed in general terms conforming with subsection (3), and accordingly may not purport to authorise particular donations or expenditure.

(6) The resolution may not relate to donations or expenditure by more than one subsidiary undertaking.

(7) Where a subsidiary undertaking makes any donation or incurs any expenditure which (to any extent) is not authorised as mentioned in subsection (2), no ratification or other approval made or given by the parent company or its members after the relevant time is capable of operating to authorise that donation or expenditure.

347F Remedies for breach of prohibitions on company donations etc

(1) This section applies where a company has made any donation or incurred any expenditure in contravention of any of the provisions of sections 347C and 347D.

(2) Every person who was a director of the company at the relevant time is liable to pay the company--

(a) the amount of the donation or expenditure made or incurred in contravention of the provisions in question; and

(b) damages in respect of any loss or damage sustained by the company as a result of the donation or expenditure having been made or incurred in contravention of those provisions.

(3) Every such person is also liable to pay the company interest on the amount mentioned in subsection (2)(a) in respect of the period--

(a) beginning with the date when the donation or expenditure was made or incurred, and

(b) ending with the date when that amount is paid to the company by any such person;

and such interest shall be payable at such rate as the Secretary of State may prescribe by regulations.

(4) Where two or more persons are subject to a particular liability arising by virtue of any provision of this section, each of those persons is jointly and severally liable.

(5) Where only part of any donation or expenditure was made or incurred in contravention of any of the provisions of sections 347C and 347D, this section applies only to so much of it as was so made or incurred.

(6) Where--

(a) this section applies as mentioned in subsection (1), and

(b) the company in question is a subsidiary of another company ("the holding company"),

then (subject to subsection (7)) subsections (2) to (5) shall, in connection with the donation or expenditure made or incurred by the subsidiary, apply in relation to the holding company as they apply in relation to the subsidiary.

(7) Those subsections do not apply in relation to the holding company if--

(a) the subsidiary is not a wholly-owned subsidiary of the holding company; and

(b) the donation or expenditure was authorised by such a resolution of the holding company as is mentioned in section 347D(2)(a).

(8) Nothing in section 727 shall apply in relation to any liability of any person arising under this section.

347G Remedy for unauthorised donation or expenditure by non-GB subsidiary

(1) This section applies where--

(a) a company ("the parent company") has a subsidiary undertaking falling within subsection (1) of section 347E;

(b) the subsidiary undertaking has made any donation or incurred any expenditure to which subsection (1) of section 347C applies; and

(c) the parent company has, in relation to that donation or expenditure, failed to discharge its duty under subsection (2) of section 347E to take all such steps as are mentioned in that subsection.

(2) Subsections (2) to (4) of section 347F shall, in connection with the donation or expenditure made or incurred by the subsidiary undertaking, apply in relation to the holding company as if--

(a) it were a company falling within subsection (1) of that section, and

(b) the donation or expenditure had been made or incurred by it in contravention of section 347C or 347D.

(3) Where only part of the donation or expenditure was not authorised as mentioned in section 347E(2), those subsections shall so apply only to that part of it.

(4) Section 347F(8) applies to any liability of any person arising under section 347F by virtue of this section.

347H Exemption of directors from liability in respect of unauthorised donation or expenditure

(1) Where proceedings are brought against a director or former director of a company in respect of any liability arising under section 347F(2)(a) in connection with a donation or expenditure made or incurred by the company, it shall be a defence for that person to show that--

(a) the unauthorised amount has been repaid to the company, together with any interest on that amount due under section 347F(3);

(b) that repayment has been approved by the company in general meeting; and

(i) of the circumstances in which the donation or expenditure was made or incurred in contravention of section 347C or 347D, and

(ii) of the circumstances in which, and the person or persons by whom, the repayment was made.

(2) Where proceedings are brought against a director or former director of a holding company in respect of any liability arising under section 347F(2)(a) in connection with a donation or expenditure made or incurred by a subsidiary of the company, it shall be a defence for that person to show that--

(a) the unauthorised amount has been repaid either to the subsidiary or to the holding company, together with any interest on that amount due under section 347F(3);

(b) that repayment has been approved--

(i) (if made to the subsidiary) by both the subsidiary and the holding company in general meeting, or

(ii) (if made to the holding company) by the holding company in general meeting; and

(c) in the notice of the relevant resolution submitted to each of those meetings or (as the case may be) to that meeting, full disclosure was made--

(i) of the circumstances in which the donation or expenditure was made in contravention of section 347D, and

(ii) of the circumstances in which, and the person or persons by whom, the repayment was made.

(3) If the subsidiary is a wholly-owned subsidiary of the holding company, it is not necessary for the purposes of subsection (2) to show (where the repayment was made to the subsidiary) that the repayment has been approved by the subsidiary, and paragraphs (b) and (c) of that subsection shall apply accordingly.

(4) Where proceedings are brought against a director or former director of a holding company in respect of any liability arising under section 347F(2)(a) in connection with a donation or expenditure made or incurred by a subsidiary of the company which is not a wholly-owned subsidiary, then (subject to subsection (5)) it shall be a defence for that person to show that--

(a) proceedings have been instituted by the subsidiary against all or any of its directors in respect of the unauthorised amount; and

(b) those proceedings are being pursued with due diligence by the subsidiary.

(5) A person may not avail himself of the defence provided by subsection (4) except with the leave of the court; and on an application for leave under this subsection the court may make such order as it thinks fit, including an order adjourning, or sanctioning the continuation of, the proceedings against the applicant on such terms and conditions as it thinks fit.

(6) Where proceedings are brought against a director or former director of a company in respect of any liability arising under section 347F(2)(a) (as applied by virtue of section 347G) in connection with a donation or expenditure made or incurred by a subsidiary undertaking of the company, it shall be a defence for that person to show that--

(a) the unauthorised amount has been repaid to the subsidiary undertaking, together with any interest on that amount due under section 347F(3) (as so applied);

(b) that repayment has been approved by the company in general meeting; and

(i) of the circumstances in which the donation or expenditure was made without having been authorised as mentioned in section 347E(2), and

(ii) of the circumstances in which, and the person or persons by whom, the repayment was made.

(7) In this section "the unauthorised amount", in relation to any donation or expenditure, means the amount of the donation or expenditure--

(a) which was made or incurred in contravention of section 347C or 347D, or

(b) which was not authorised as mentioned in section 347E(2),

as the case may be.

347I Enforcement of directors' liabilities by shareholder action

(1) Any liability of any person under section 347F or 347G as a director or former director of a company is (in addition to being enforceable by proceedings brought by the company) enforceable by proceedings brought under this section in the name of the company by an authorised group of members of the company.

(2) For the purposes of this section "authorised group", in relation to the members of a company, means any such combination of members as is specified in section 54(2)(a), (b) or (c).

(3) An authorised group of members of a company may not bring proceedings under this section unless--

(a) the group has given written notice to the company stating--

(i) the cause of action and a summary of the facts on which the proceedings are to be based,

(ii) the names and addresses of the members of the company comprising the group, and

(iii) the grounds on which it is alleged that those members constitute an authorised group; and

(b) not less than 28 days have elapsed between the date of the giving of the notice to the company and the institution of the proceedings.

(4) Where such a notice is given to a company, any director may apply to the court within the period of 28 days beginning with the date of the giving of the notice for an order directing that the proposed proceedings are not to be instituted.

(5) An application under subsection (4) may be made on one or more of the following grounds--

(a) that the unauthorised amount within the meaning of section 347H has been repaid to the company or subsidiary undertaking as mentioned in subsection (1), (2), (4) or (6) of that section (as the case may be) and the other conditions mentioned in that subsection were satisfied with respect to that repayment;

(b) that proceedings to enforce the liability have been instituted by the company and are being pursued with due diligence by the company;

(6) Where such an application is made on the ground mentioned in subsection (5)(b), the court may make such order as it thinks fit; and such an order may, as an alternative to directing that the proposed proceedings under this section are not to be instituted, direct--

(a) that those proceedings may be instituted on such terms and conditions as the court thinks fit;

(b) that the proceedings instituted by the company are to be discontinued;

(c) that the proceedings instituted by the company may be continued on such terms and conditions as the court thinks fit.

(7) If proceedings are brought under this section by an authorised group of members of a company, the group shall owe the same duties to the company in relation to the bringing of those proceedings on behalf of the company as would be owed by the directors of the company if the proceedings were being brought by the company itself; but no proceedings to enforce any duty owed by virtue of this subsection shall be brought by the company except with the leave of the court.

(8) Proceedings brought under this section may not be discontinued or settled by the group except with the leave of the court; and the court may grant leave under this subsection on such terms as it thinks fit.

347J Costs of shareholder action

(1) This section applies in relation to proceedings brought under section 347I by an authorised group of members of a company ("the group").

(2) The group may apply to the court for an order directing the company to indemnify the group in respect of costs incurred or to be incurred by the group in connection with the proceedings; and on such an application the court may make such an order on such terms as it thinks fit.

(3) The group shall not be entitled to be paid any such costs out of the assets of the company except by virtue of such an order.

(4) If--

(a) the company is awarded costs in connection with the proceedings or it is agreed that costs incurred by the company in connection with the proceedings should be paid by any defendant, and

(b) no order has been made with respect to the proceedings under subsection (2),

the costs shall be paid to the group.

(5) If--

(a) any defendant is awarded costs in connection with the proceedings or it is agreed that any defendant should be paid costs incurred by him in connection with the proceedings, and

(b) no order has been made with respect to the proceedings under subsection (2),

the costs shall be paid by the group.

(6) In the application of this section to Scotland references to costs are to expenses and references to any defendant are to any defender.

347K Information for purposes of shareholder action

(1) Where any proceedings have been instituted under section 347I by an authorised group within the meaning of that section, the group is entitled to require the company to provide the group with all information relating to the subject matter of the proceedings which is in the company's possession or under its control or which is reasonably obtainable by it.

(2) If the company, having been required by the group to provide the information referred to in subsection (1), refuses to provide the group with all or any of the information, the court may, on an application made by the group, make an order directing--

(a) the company, and

(b) any of its officers or employees specified in the application,

to provide the group with the information in question in such form and by such means as the court may direct. "

Section 150.

SCHEDULE 20 Penalties

Provision creating offence	Penalty
Section 24(8) (registration as treasurer where convicted of certain offences)	On summary conviction: Level 5
Section 39 (false statements)	On summary conviction: Level 5
Section 43(7) (failure to deliver statement relating to auditor's resignation etc)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 44(4) (making false statement to auditor)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 47(1)(a) (failure to deliver proper statement of accounts)	On summary conviction: Level 5
Section 47(1)(b) (failure to deliver accounts within time limits)	On summary conviction: Level 5
Section 54(7) (failure to provide information about donors)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 56(3) or (4) (failure to return donations)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 61(1) (facilitating the making of donations by impermissible donors)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 61(2)(a) (knowingly giving treasurer false information about donations)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 61(2)(b) (withholding information about donations from treasurer with intent to deceive)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 65(3) (failure to deliver donation reports to Commission within time limits)	On summary conviction: Level 5
Section 65(4) (failure to comply with requirements for recording donations in donation report)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 66(5) (making a false declaration about donation report)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 68(5) (failure to report multiple small donations; false declaration about such donations)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 73(8) (making a false declaration about value of property etc.)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 74(4) (acceptance by ineligible person of office of deputy treasurer)	On summary conviction: Level 5
Section 75(2) (incurring campaign expenditure without authority)	On summary conviction: Level 5
Section 76(4)(a) (making payments in respect of campaign expenditure without authority)	On summary conviction: Level 5
Section 76(4)(b) (failure to notify treasurer of payments in respect of campaign expenditure)	On summary conviction: Level 5
Section 77(3)(a) (paying claim in respect of campaign expenditure where failure to comply with procedure)	On summary conviction: Level 5
Section 77(3)(b) (paying claim in respect of campaign expenditure outside specified time period)	On summary conviction: Level 5
Section 79(2) (exceeding limits on campaign expenditure)	On summary conviction: statutory maximum On indictment : fine
Section 82(4)(a) (failure of treasurer to deliver return and auditor's report to Commission)	On summary conviction: Level 5
Section 82(4)(b) (failure to comply with requirements for returns)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 82(4)(c) (failure of treasurer to deliver return and court order to Commission)	On summary conviction: Level 5
Section 83(3)(a) (making a false declaration to Commission when delivering return)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 83(3)(b) (failure to deliver signed declaration with return to Commission)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 86(8) (making false declaration about value of property etc)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 90(2) (incurring controlled expenditure without authority)	On summary conviction: level 5
Section 91(4)(a) (making payments in respect of controlled expenditure without authority)	On summary conviction: Level 5
Section 91(4)(b) (failure to notify responsible person of payments in respect of controlled expenditure)	On summary conviction: Level 5
Section 92(3)(a) (paying claim in respect of controlled expenditure where failure to comply with procedure)	On summary conviction: Level 5
Section 92(3)(b) (paying claim in respect of controlled expenditure outside specified time period)	On summary conviction: Level 5
Section 94(2) or (4) (exceeding limits on controlled expenditure)	On summary conviction: statutory maximum On indictment : fine
Section 98(4)(a) (failure of responsible person to deliver return and auditor's report to Commission)	On summary conviction: Level 5
Section 98(4)(b) (failure to comply with requirements for returns)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 98(4)(c) (failure to deliver return and court order to Commission)	On summary conviction: Level 5
Section 99(4)(a) (making a false declaration to Commission when delivering return)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 99(4)(b) (failure to deliver signed declaration with return to Commission)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 112(8) (making a false declaration about value of property etc)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 113(2) (incurring referendum expenses without authority)	On summary conviction: Level 5
Section 114(4)(a) (making payments in respect of referendum expenses without authority)	On summary conviction: Level 5
Section 114(4)(b) (failure to notify responsible person of payments in respect of referendum expenses)	On summary conviction: Level 5
Section 115(3)(a) (paying claim in respect of referendum expenses where failure to comply with procedure)	On summary conviction: Level 5
Section 115(3)(b) (paying claim in respect of referendum expenses outside specified time period)	On summary conviction: Level 5
Section 117(2) (individual (other than permitted participant) exceeding limits on referendum expenses)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 117(3) or (4) (body (other than permitted participant) exceeding limits on referendum expenses)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 118(2) (permitted participant exceeding limits on referendum expenses)	On summary conviction: statutory maximum On indictment : fine
Section 122(4)(a) (failure to deliver return and auditor's report to Commission)	On summary conviction: Level 5
Section 122(4)(b) (failure to comply with requirements for returns)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 122(4)(c) (failure to deliver return and court order to Commission)	On summary conviction: Level 5
Section 123(4)(a) (making a false declaration to Commission when delivering return)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 123(4)(b) (failure to deliver signed declaration with return to Commission)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 126(8) or (9) (printing or publishing referendum material without details of printer or publisher)	On summary conviction: Level 5
Section 143(8) or (9) (printing or publishing election material without details of printer or publisher)	On summary conviction: Level 5
Section 146(5) (failure to comply with supervision requirement)	On summary conviction: Level 5
Section 146(6) (intentional obstruction of person exercising right of entry etc.)	On summary conviction: Level 5
Section 148(1) (alteration of documents etc.)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 148(2)(a) (failure to supply relevant person with information)	On summary conviction: Level 5
Section 148(2)(b) (supplying relevant person with false information)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Section 148(3) (withholding information from relevant person with intent to deceive)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Paragraph 6(5) of Schedule 7 (failure to provide information about donors)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Paragraph 12(1) of Schedule 7 (failure to deliver donation report to Commission within time limit)	On summary conviction: Level 5
Paragraph 12(2) of Schedule 7 (failure to comply with requirements for recording donations in donation reports)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Paragraph 13(4) of Schedule 7 (making a false declaration about donation report)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Paragraph 14(5) of Schedule 7 (failure to report multiple small donations; false declaration about such donations)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Paragraph 6(7) of Schedule 11 (failure to provide information about donors)	On summary conviction: statutory maximum or 6 months On indictment : fine or 1 year
Paragraph 6(8) of Schedule 15 (failure to provide information about donors)	On summary conviction: statutory maximum or 6 months: On indictment : fine or 1 year

Section 158.

SCHEDULE 21 Minor and consequential amendments

Public Records Act 1958 (c. 51)

1 In Part II of the Table at the end of paragraph 3 of the First Schedule to the Public Records Act 1958 (establishments and organisations whose records are public records), insert at the appropriate place--

" Electoral Commission. "

Parliamentary Commissioner Act 1967 (c. 13)

2 In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments etc. subject to investigation), insert at the appropriate place--

" Electoral Commission. "

House of Commons Disqualification Act 1975 (c. 24)

3 In Schedule 1 to the House of Commons Disqualification Act 1975 (offices disqualifying for membership)--

(a) in Part II (bodies of which all members are disqualified), insert at the appropriate place--

" The Electoral Commission. " ; and

(b) in Part III (other disqualifying offices), insert at the appropriate places--

" Deputy Electoral Commissioners. " ,

" Assistant Electoral Commissioners. " , and

" Member of the staff of the Electoral Commission. "

Northern Ireland Assembly Disqualification Act 1975 (c. 25)

4 In Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975 (offices disqualifying for membership)--

(a) in Part II (bodies of which all members are disqualified), insert at the appropriate place--

" The Electoral Commission. " ; and

(b) in Part III (other disqualifying offices), insert at the appropriate places--

" Deputy Electoral Commissioners. " ,

" Assistant Electoral Commissioners. " , and

" Member of the staff of the Electoral Commission. "

European Parliamentary Elections Act 1978 (c. 10)

5 (1) The European Parliamentary Elections Act 1978 (as amended by the [1999 c. 1] European Parliamentary Elections Act 1999) is amended as follows.

(2) In section 3(8)(a) (electoral system in Great Britain: meaning of "registered party"), for "a party registered under the Registration of Political Parties Act 1998" substitute "a party registered under Part II of the Political Parties, Elections and Referendums Act 2000".

(3) In paragraph 2(3A)(a) of Schedule 1 (European Parliamentary elections), for "(including expenses incurred in relation to a general election as a whole)" substitute "of candidates".

Representation of the People Act 1983 (c. 2)

6 (1) The Representation of the People Act 1983 is amended as follows.

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