Parliamentary Voting System and Constituencies Bill

House of Commons

Session 2010 - 11
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Parliamentary Voting System and Constituencies Bill

Parliamentary Voting System and Constituencies Bill
Schedule 4 — Application to the referendum of existing provisions
Part 4 — The 2008 Regulations (Northern Ireland)
132

Provision
Modification

Regulation 116 (supply of
In paragraph (1)—

marked registers and lists
(a)
for the words from “regulation 99” to “local

after an election)
government election” substitute

“regulations 99, 105, 107 or 111, with copies

5

of the full register”;

(b)
at the end insert—


“The reference to a person entitled to be

supplied in accordance with regulation 105

with copies of the full register does not

10

include a person mentioned in regulation

105(1)(b).”

In paragraph (2)—

(a)
for the words from “regulation 102” to

“particular election” substitute “regulation

15

105(1)(a) or (c) applies before the

referendum”;

(b)
for “that election” substitute “the

referendum”.

In paragraph (6)(b), for “regulations 99, 102, 104,

20

105, 106, 107 or 111” substitute “regulations 99, 105,

107 and 111”.

Regulation 117 (inspection of
In paragraph (1)(b), for “an election” substitute “the

documents open to public
referendum”.

inspection)

25

Regulation 118 (conditions
In paragraph (2) omit “either” and at the end insert

on the use, supply and
“or any purpose in connection with the

disclosure of documents
referendum”.

open to public inspection)

Regulation 119 (fees relating

30

to the supply of marked

registers and lists)

In Schedule 3, Form N
For the heading substitute “REFERENDUM ON

THE VOTING SYSTEM FOR

PARLIAMENTARY ELECTIONS”.

35

For “constituency” substitute “voting area”.

For “returning officer” (in each place) substitute

“counting officer”.

Parliamentary Voting System and Constituencies Bill
Schedule 5 — Control of loans etc to permitted participants
—
133

Schedule 5
Section 4

Control of loans etc to permitted participants

The Schedule referred to in section 4(1) is as follows—
“Schedule 15A
5
Control of loans etc to permitted participants
Part 1
Introductory
Operation of Schedule
1     (1)
This Schedule has effect in relation to the referendum under
10
section 1 of the Parliamentary Voting System and Constituencies
Act 2010 for controlling regulated transactions entered into by
permitted participants that either are not registered parties or are
minor parties.
      (2)
The following provisions have effect for the purposes of this
15
Schedule.
      (3)
In accordance with sub-paragraph (1), “permitted participant”
does not include a permitted participant which is a registered
party other than a minor party.
      (4)
“Regulated transaction” has the meaning given by paragraph 2.
20
      (5)
In relation to transactions entered into by a permitted participant
other than a designated organisation, the reference in paragraph
4(2) to a permissible donor falling within section 54(2) does not
include a registered party.

In this sub-paragraph “designated organisation” has the meaning
25
given by section 110(5).
Regulated transactions
2     (1)
An agreement between a permitted participant and another
person by which the other person makes a loan of money to the
permitted participant is a regulated transaction if the use
30
condition is satisfied.
      (2)
An agreement between a permitted participant and another
person by which the other person provides a credit facility to the
permitted participant is a regulated transaction if the use
condition is satisfied.
35
      (3)
Where—
(a)
a permitted participant and another person (A) enter into
a regulated transaction of a description mentioned in sub-
paragraph (1) or (2), or a transaction under which any
property, services or facilities are provided for the use or
40

Parliamentary Voting System and Constituencies Bill
Schedule 5 — Control of loans etc to permitted participants
—
134

benefit of the permitted participant (including the services
of any person),
(b)
A also enters into an arrangement whereby another person
(B) gives any form of security (whether real or personal)
for a sum owed to A by the permitted participant under the
5
transaction mentioned in paragraph (a), and
(c)
the use condition is satisfied,

the arrangement is a regulated transaction.
      (4)
An agreement or arrangement is also a regulated transaction if—
(a)
the terms of the agreement or arrangement as first entered
10
into do not constitute a regulated transaction by virtue of
sub-paragraph (1), (2) or (3), but
(b)
the terms are subsequently varied in such a way that the
agreement or arrangement becomes a regulated
transaction.
15
      (5)
The use condition is that the permitted participant intends at the
time of entering into a transaction mentioned in sub-paragraph
(1), (2) or (3)(a) to use any money or benefit obtained in
consequence of the transaction for meeting referendum expenses
incurred by or on behalf of the permitted participant.
20
      (6)
For the purposes of sub-paragraph (5), it is immaterial that only
part of the money or benefit is intended to be used for meeting
referendum expenses incurred by or on behalf of the permitted
participant.
      (7)
References in sub-paragraphs (1) and (2) to a permitted participant
25
include references to an officer, member, trustee or agent of the
permitted participant if that person makes the agreement as such.
      (8)
References in sub-paragraph (3) to a permitted participant include
references to an officer, member, trustee or agent of the permitted
participant if the property, services or facilities are provided to
30
that person as such, or the sum is owed by that person as such.
      (9)
A reference to a connected transaction is a reference to the
transaction mentioned in sub-paragraph (3)(b).
     (10)
In this paragraph a reference to anything being done by or in
relation to a permitted participant or a person includes a reference
35
to its being done directly or indirectly through a third person.
     (11)
A credit facility is an agreement whereby a permitted participant
is enabled to receive from time to time from another party to the
agreement a loan of money not exceeding such amount (taking
account of any repayments made by the permitted participant) as
40
is specified in or determined in accordance with the agreement.
     (12)
An agreement or arrangement is not a regulated transaction—
(a)
to the extent that a payment made in pursuance of the
agreement or arrangement falls, by virtue of paragraph 9
of Schedule 15, to be included in a return under section
45
120, or
(b)
if its value is not more than £500.

Parliamentary Voting System and Constituencies Bill
Schedule 5 — Control of loans etc to permitted participants
—
135

Valuation of regulated transaction
3     (1)
The value of a regulated transaction which is a loan is the value of
the total amount to be lent under the loan agreement.
      (2)
The value of a regulated transaction which is a credit facility is the
maximum amount which may be borrowed under the agreement
5
for the facility.
      (3)
The value of a regulated transaction which is an arrangement by
which any form of security is given is the contingent liability
under the security provided.
      (4)
For the purposes of sub-paragraphs (1) and (2), no account is to be
10
taken of the effect of any provision contained in a loan agreement
or an agreement for a credit facility at the time it is entered into
which enables outstanding interest to be added to any sum for the
time being owed in respect of the loan or credit facility, whether or
not any such interest has been so added.
15
Part 2
Controls on regulated transactions
Authorised participants
4     (1)
A permitted participant must not—
(a)
be a party to a regulated transaction to which any of the
20
other parties is not an authorised participant;
(b)
derive a benefit in consequence of a connected transaction
if any of the parties to that transaction is not an authorised
participant.
      (2)
In this Schedule, an authorised participant is a person who is a
25
permissible donor falling within section 54(2).
      (3)
An individual or body treated by virtue of section 71Z1 as an
authorised participant for the purposes of section 71H(3) is also an
authorised participant for the purposes of this Schedule in its
application to a regulated transaction to which a party registered
30
in the Northern Ireland register is a party.
Regulated transaction involving unauthorised participant
5     (1)
This paragraph applies if a permitted participant is a party to a
regulated transaction to which another party is not an authorised
participant.
35
      (2)
The transaction is void.
      (3)
Despite sub-paragraph (2)—
(a)
any money received by the permitted participant by virtue
of the transaction must be repaid by the responsible person
to the person from whom it was received, along with
40
interest at the rate referred to in section 71I(3)(a);
(b)
the person from whom it was received is entitled to
recover the money, along with such interest.

Parliamentary Voting System and Constituencies Bill
Schedule 5 — Control of loans etc to permitted participants
—
136

      (4)
If—
(a)
the money is not (for whatever reason) repaid as
mentioned in sub-paragraph (3)(a), or
(b)
the person entitled to recover the money refuses or fails to
do so,
5

the Commission may apply to the court to make such order as it
thinks fit to restore (so far as is possible) the parties to the
transaction to the position they would have been in if the
transaction had not been entered into.
      (5)
An order under sub-paragraph (4) may in particular—
10
(a)
where the transaction is a loan or credit facility, require
that any amount owed by the permitted participant be
repaid (and that no further sums be advanced under it);
(b)
where any form of security is given for a sum owed under
the transaction, require that security to be discharged.
15
      (6)
In the case of a regulated transaction where a party other than a
permitted participant—
(a)
at the time the permitted participant enters into the
transaction, is an authorised participant, but
(b)
subsequently, for whatever reason, ceases to be an
20
authorised participant,

the transaction is void and sub-paragraphs (3) to (5) apply with
effect from the time when the other party ceased to be an
authorised participant.
Guarantees and securities: unauthorised participant
25
6     (1)
This paragraph applies if—
(a)
a permitted participant and another person (A) enter into
a transaction of a description mentioned in
paragraph 2(3)(a),
(b)
A is party to a regulated transaction of a description
30
mentioned in paragraph 2(3)(b) (“the connected
transaction”) with another person (B), and
(c)
B is not an authorised participant.
      (2)
Paragraph 5(2) to (5) applies to the transaction mentioned in sub-
paragraph (1)(a).
35
      (3)
The connected transaction is void.
      (4)
Sub-paragraph (5) applies if (but only if) A is unable to recover
from the permitted participant or the responsible person the
whole of the money mentioned in paragraph 5(3)(a) (as applied by
sub-paragraph (2) above), along with such interest as is there
40
mentioned.
      (5)
Despite sub-paragraph (3), A is entitled to recover from B any part
of that money (and such interest) that is not recovered from the
permitted participant or the responsible person.
      (6)
Sub-paragraph (5) does not entitle A to recover more than the
45
contingent liability under the security provided by virtue of the
connected transaction.

Parliamentary Voting System and Constituencies Bill
Schedule 5 — Control of loans etc to permitted participants
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      (7)
In the case of a connected transaction where B—
(a)
at the time A enters into the transaction, is an authorised
participant, but
(b)
subsequently, for whatever reason, ceases to be an
authorised participant,
5

sub-paragraphs (2) to (6) apply with effect from the time when B
ceased to be an authorised participant.
      (8)
If the transaction mentioned in paragraph 2(3)(a) is not a regulated
transaction of a description mentioned in paragraph 2(1) or (2),
references in this paragraph and paragraph 5(2) to (5) (as applied
10
by sub-paragraph (2) above) to the repayment or recovery of
money are to be construed as references to (as the case may be)—
(a)
the return or recovery of any property provided under the
transaction,
(b)
to the extent that such property is incapable of being
15
returned or recovered or its market value has diminished
since the time the transaction was entered into, the
repayment or recovery of the market value at that time, or
(c)
the market value (at that time) of any facilities or services
provided under the transaction.
20
Transfer to unauthorised participant invalid
7
If an authorised participant purports to transfer the participant’s
interest in a regulated transaction to a person who is not an
authorised participant the purported transfer is of no effect.
Offences
25
8     (1)
An individual who is a permitted participant commits an offence
if—
(a)
the individual enters into a regulated transaction of a
description mentioned in paragraph 2(1) or (2) to which
another party is not an authorised participant, and
30
(b)
the individual knew or ought reasonably to have known of
the matters mentioned in paragraph (a).
      (2)
A permitted participant that is not an individual commits an
offence if—
(a)
it enters into a regulated transaction of a description
35
mentioned in paragraph 2(1) or (2) to which another party
is not an authorised participant, and
(b)
an officer of the permitted participant knew or ought
reasonably to have known of the matters mentioned in
paragraph (a).
40
      (3)
A person who is the responsible person in relation to a permitted
participant that is not an individual commits an offence if—
(a)
the permitted participant enters into a regulated
transaction of a description mentioned in paragraph 2(1)
or (2) to which another party is not an authorised
45
participant, and

Parliamentary Voting System and Constituencies Bill
Schedule 5 — Control of loans etc to permitted participants
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(b)
the person knew or ought reasonably to have known of the
matters mentioned in paragraph (a).
      (4)
An individual who is a permitted participant commits an offence
if—
(a)
the individual enters into a regulated transaction of a
5
description mentioned in paragraph 2(1) or (2) to which
another party is not an authorised participant,
(b)
the individual neither knew nor ought reasonably to have
known that the other party is not an authorised
participant, and
10
(c)
as soon as practicable after knowledge of the matters
mentioned in paragraph (a) comes to the individual he
fails to take all reasonable steps to repay any money which
the individual has received by virtue of the transaction.
      (5)
A permitted participant that is not an individual commits an
15
offence if—
(a)
it enters into a regulated transaction of a description
mentioned in paragraph 2(1) or (2) to which another party
is not an authorised participant,
(b)
no officer of the permitted participant knew or ought
20
reasonably to have known that the other party is not an
authorised participant, and
(c)
as soon as practicable after knowledge of the matters
mentioned in paragraph (a) comes to the responsible
person he fails to take all reasonable steps to repay any
25
money which the permitted participant has received by
virtue of the transaction.
      (6)
A person who is the responsible person in relation to a permitted
participant that is not an individual commits an offence if—
(a)
the permitted participant enters into a regulated
30
transaction of a description mentioned in paragraph 2(1)
or (2) to which another party is not an authorised
participant,
(b)
sub-paragraph (3)(b) does not apply to the person, and
(c)
as soon as practicable after knowledge of the matters
35
mentioned in paragraph (a) comes to the person he fails to
take all reasonable steps to repay any money which the
permitted participant has received by virtue of the
transaction.
      (7)
An individual who is a permitted participant commits an offence
40
if—
(a)
the individual benefits from or falls to benefit in
consequence of a connected transaction to which any of the
parties is not an authorised participant, and
(b)
the individual knew or ought reasonably to have known of
45
the matters mentioned in paragraph (a).
      (8)
A permitted participant that is not an individual commits an
offence if—