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Company Law Reform Bill [HL]

moved Amendment No. 301ZC:"Page 151, line 2, at end insert—" ““(   )   If in proceedings brought by shareholder action under section 347I of the Companies Act 1985 (c. 6) (enforcement of directors’ liabilities by shareholder action) it appears to the court hearing the case that the directors acted honestly and reasonably, and that having regard to all of the circumstances of the case they ought fairly to be excused, the court may relieve them, either wholly or in part, from their liability on such terms as it thinks fit.”” The noble Lord said: This amendment raises an important point of principle. Its purpose is to provide relief for directors from liability for unauthorised political donations and expenditure in appropriate cases. At present it appears that the legislation provides no relief from shareholder action against directors for unauthorised political expenditure or donations. The amendment follows the example of Clause 759, which provides the court with the power to grant relief in certain cases where proceedings are initiated against an officer of a company. We see no reason why there should not be an equivalent provision to give the court power to grant relief in appropriate circumstances for unauthorised political donations. I beg to move.