§ Mr. Arthur Lewisasked the Minister for Trade if he will introduce legislation to prevent public limited companies from contributing to organisations with political objectives unless first approved by a vote of the shareholders.
§ Dr. VaughanNo. A company can only make political contributions where, in the opinion of the directors, the payment made falls within the objects clause of the company's memorandum of association and is bona fide for the benefit of the company. Particulars of most such contributions have to be disclosed to shareholders under S.19 of the Companies Act 1967.