---

Company Law Reform Bill [HL]

We do not see these as just drafting amendments. The Government are not persuaded by them. We believe that there is a strong case for exempting small donations, not least because we accept that a company may make some forms of donation—for example, attendance at a fund-raising dinner—for reasons other than an intent to fund a political party or organisation. We do not think that the same is true for political expenditure. For example, a company is unlikely to incur expenditure on an advertising campaign which is capable of being reasonably regarded as intended to affect public support for a political party without having considered the issues carefully. Direct involvement by a company in political activities is a major step which we believe should always be subject to member authorisation.