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The Companies (Political Expenditure Exemption) Order 2007

Draft. This instrument was laid in draft and may differ from the one made. Look for the made version under its title.

Draft 2007, ISBN 9780110771564

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Draft Order laid before Parliament under sections 377(4) and 1290 of the Companies Act 2006, for approval by resolution of each House of Parliament.

COMPANIES

Made 2007

Coming into force in accordance with article 1(2) and (3)

The Secretary of State makes the following Order in exercise of the powers conferred by sections 377 and 1292(1)(c) of the Companies Act 2006f1.

In accordance with sections 377(4) and 1290 of that Act, a draft of this instrument was laid before Parliament and approved by a resolution of each House of Parliament.

Annotations to the whole text

Footnotes

f1

2006 c.46.

Contents

  1. 1Citation, commencement and interpretation
  2. 2Exemption from authorisation
  3. 3Description of political expenditure
  4. 4Description of company
  5. Signature
  6. Explanatory note

1Citation, commencement and interpretation

(1)

This Order may be cited as the Companies (Political Expenditure Exemption) Order 2007.

(2)

This Order, except for article 3(b), shall come into force—

(a)

for the purposes of its application to Great Britain, on 1st October 2007;

(b)

for the purposes of its application to Northern Ireland, on 1st November 2007.

(3)

Article 3(b) shall come into force on 1st October 2008.

(4)

In this Order, “news material” means material relating to—

(a)

news,

(b)

public and political affairs,

(c)

public and political events, or

(d)

views, opinion or comment on such news, affairs or events.

2Exemption from authorisation

Political expenditure is exempt from the need for authorisation under Part 14 of the Companies Act 2006 if it is—

(a)

political expenditure to which article 3 applies, and

(b)

incurred by a company to which article 4 applies.

3Description of political expenditure

This article applies to political expenditure incurred in respect of the preparation, publication or dissemination of news material, where that material contains matter which would render that preparation, publication or dissemination on the part of the company an activity on the part of the company that is capable of being reasonably regarded as intended—

(a)

to affect public support for a political party or other political organisation,

(b)

to affect public support for an independent election candidate, or

(c)

to influence voters in relation to any national or regional referendum held under the law of a member State.

4Description of company

(1)

This article applies to any company whose ordinary course of business includes, or is proposed to include, the publication or dissemination to the public or any part of the public, of news material, or the preparation of such material for publication or dissemination to the public or any part of the public.

(2)

For the purposes of paragraph (1), it is to be irrelevant—

(a)

by which means or modes the news material is to be prepared, published or disseminated;

(b)

where the public or part of it to which such material is published or disseminated is located; or

(c)

how the public or part of it to which such material is published or disseminated is identified or described.

Signature

Minister of State for Industry and the Regions

Department of Trade and Industry

Date

Explanatory note

(This note is not part of the Order)

This Order exempts certain political expenditure incurred by news companies from the need for authorisation by the company’s members under Part 14 of the Companies Act 2006.

The expenditure exempted, described in article 3 of the Order, is that incurred in the preparation, publication and dissemination of news material which is capable of being reasonably regarded as intended to affect public support for a political party or other political organisation, or an independent election candidate, or to influence voters in relation to any national or regional referendum held under the law of a member State.

The companies exempted, described in article 4 of the Order, are those whose ordinary course of business includes the preparation, publication or dissemination to the public, or any part of the public, of news material.

This Order replaces the Companies (EU Political Expenditure) Exemption Order 2001, which was made under section 347B of the Companies Act 1985. Section 347B is repealed by section 1295 of, and Schedule 16 to, the Companies Act 2006 with effect from the date on which this Order comes into force in Great Britain.

A full regulatory impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.