HC Deb 03 March 1980 vol 980 cc58-107 4.49 pm
Mr. John Smith (Lanarkshire, North)

I beg to move amendment No. 56, in Page 48, line 42 at end insert— '(6) A Company to which this subsection applies shall not after the appointed day apply its assets in furtherance of political objects otherwise than in accordance with the provisions of Schedule (Distribution of profits and of assets for political objects) and shall accordingly act in relation to distributions in accordance with that Schedule. (7) Where, in accordance with subsection (6) above, a company transfers into its political fund an amount otherwise payable to a member by reason of a distribution that member shall not at any time have any proprietary interest whatsoever in that amount. (8) Where, in accordance with subsection (6) above, a company transfers an amount into its political fund, the computation of its net assets in the relevant accounting reference period for the purposes of subsection (1) (a) above shall be deemed to exclude an amount equal to that amount. (9) In subsection (8) above "the relevant accounting reference period" means that period prescribed by regulation made by statutory instrument by the Secretary of State. (10) Subsection (6) above applies to a public company, and to a subsidiary of a public company; and in this subsection "public company" includes, nothwithstanding section 8(2) or any other provision of this Act, an old public company from the appointed day.'.

Mr. Speaker

With this we will take the following amendments:

No. 57, in clause 41, page 51, line 3, at end insert— (14) The Secretary of State may by regulation made by statutory order apply section 40(6), (7), (8), (9), (10) and Schedule (Distribution of profits and of assets for political objects) to investment companies with such variations in the provisions of the said Schedule which he considers appropriate:— Provided that no such regulation shall abrogate or vary the provisions of the said Schedule concerning: the restriction of the application of a company's assets to political objects to applications of assets only from its political fund; the requirement for an ordinary resolution in general meeting authorising such a political fund; the requirement that the political fund must be financed out of sums otherwise distributable to members and not otherwise; the rights of exempt members; and the definition of "political objects.".'.

No. 58, in clause 42, page 51, line 33, at end insert— (3) Section 40(6), (7), (8), (9) and (10) Above shall apply to insurance companies with such variations in those subsections and in Schedule (Distribution of profits and of assets for political objects) as the Secretary of State may prescribe by regulations made by statutory instrument.'.

No. 157, to insert a new schedule:

    cc59-107
  1. 'DISTRIBUTION OF PROFITS AND OF ASSETS FOR POLITICAL OBJECTS 18,293 words, 1 division