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(Political Expenditure) Exemption Order 2007

Frequently asked questions

• What will the Order do?
• Does the Order replace any existing legislation?
• What activities in relation to ‘political expenditure’ does the Exemption Order cover?
• When will the Order come into force?

What will the Order do?

The Order exempts companies whose ordinary business includes the publication of news (such as newspapers, and other publishing or media-related companies) from having to seek shareholder authorisation in order to prepare, publish, or disseminate material of a political nature. This is because it would be impractical for them to have to comply with the provisions on political expenditure in Part 14 of the Companies Act 2006 for something which is within the ordinary course of their business.

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Does the Order replace any existing legislation?

This Order replaces rewrites the existing Order SI 2001/445 using simpler language and the format of the 2006 Act, with no changes to the substance.

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What activities in relation to ‘political expenditure’ does the Exemption Order cover?

The meaning of political expenditure is given in Article 3 of the Order, and means anything that a company spends on preparing, publishing or disseminating material that could affect support for a political party or candidate.

Companies such as newspapers will not need to seek shareholder authorisation for expenditure incurred in preparing, publishing or disseminating advertisements from third parties which could affect public support for a political party or influence voters.

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When will the Order come into force?

1 October 2007 along with the provisions in Part 14 of the Companies Act 2006.

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