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 5 — Control of loans etc to permitted participants
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139

(a)
it 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)
an officer of the permitted participant knew or ought
reasonably to have known of the matters mentioned in
5
paragraph (a).
      (9)
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 benefits from or falls to benefit in
consequence of a connected transaction to which any of the
10
parties is not an authorised participant, and
(b)
the person knew or ought reasonably to have known of the
matters mentioned in paragraph (a).
     (10)
An individual who is a permitted participant commits an offence
if—
15
(a)
the individual is a party to a transaction of a description
mentioned in paragraph 2(3)(a),
(b)
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,
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(c)
the individual neither knew nor ought reasonably to have
known of the matters mentioned in paragraphs (a) and (b),
and
(d)
as soon as practicable after knowledge of the matters
mentioned in paragraphs (a) and (b) comes to the
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individual he fails to take all reasonable steps to pay to any
person who has provided the individual with any benefit
in consequence of the connected transaction the value of
the benefit.
     (11)
A permitted participant that is not an individual commits an
30
offence if—
(a)
it is a party to a transaction of a description mentioned in
paragraph 2(3)(a),
(b)
it benefits from or falls to benefit in consequence of a
connected transaction to which any of the parties is not an
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authorised participant,
(c)
no officer of the permitted participant knew or ought
reasonably to have known of the matters mentioned in
paragraphs (a) and (b), and
(d)
as soon as practicable after knowledge of the matters
40
mentioned in paragraphs (a) and (b) comes to the
responsible person he fails to take all reasonable steps to
pay to any person who has provided the permitted
participant with any benefit in consequence of the
connected transaction the value of the benefit.
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     (12)
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 is a party to a transaction of a
description mentioned in paragraph 2(3)(a),

Parliamentary Voting System and Constituencies Bill
Schedule 5 — Control of loans etc to permitted participants
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(b)
the permitted participant benefits from or falls to benefit in
consequence of a connected transaction to which any of the
parties is not an authorised participant,
(c)
sub-paragraph (9)(b) does not apply to the person, and
(d)
as soon as practicable after knowledge of the matters
5
mentioned in paragraphs (a) and (b) comes to the person
he fails to take all reasonable steps to pay to any person
who has provided the permitted participant with any
benefit in consequence of the connected transaction the
value of the benefit.
10
     (13)
A person commits an offence if the person—
(a)
knowingly enters into, or
(b)
knowingly does any act in furtherance of,

any arrangement which facilitates or is likely to facilitate, whether
by means of concealment or disguise or otherwise, the
15
participation by a permitted participant in a regulated transaction
with a person other than an authorised participant.
     (14)
It is a defence for a person charged with an offence under sub-
paragraph (3) to prove that the person took all reasonable steps to
prevent the permitted participant entering into the transaction.
20
     (15)
It is a defence for a person charged with an offence under sub-
paragraph (9) to prove that the person took all reasonable steps to
prevent the permitted participant benefiting in consequence of the
connected transaction.
     (16)
A reference to a permitted participant entering into a regulated
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transaction includes a reference to any circumstances in which the
terms of a regulated transaction are varied so as to increase the
amount of money to which the permitted participant is entitled in
consequence of the transaction.
     (17)
A reference to a permitted participant entering into a transaction
30
to which another party is not an authorised participant includes a
reference to any circumstances in which another party to the
transaction who is an authorised participant ceases (for whatever
reason) to be an authorised participant.
Penalties
35
9     (1)
A person guilty of an offence under sub-paragraph (1), (2), (4), (7),
(8) or (10) of paragraph 8 is liable—
(a)
on summary conviction, to a fine not exceeding the
statutory maximum;
(b)
on conviction on indictment, to a fine.
40
      (2)
A person guilty of an offence under sub-paragraph (3), (5), (6), (9),
(11), (12) or (13) of paragraph 8 is liable—
(a)
on summary conviction, to imprisonment for a term not
exceeding 12 months or to a fine not exceeding the
statutory maximum;
45
(b)
on conviction on indictment, to imprisonment for a term
not exceeding 12 months or to a fine.

Parliamentary Voting System and Constituencies Bill
Schedule 5 — Control of loans etc to permitted participants
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      (3)
In the application of sub-paragraph (2)(a)—
(a)
in England and Wales, in relation to an offence committed
before the commencement of section 154(1) of the Criminal
Justice Act 2003, or
(b)
in Northern Ireland,
5

the reference to 12 months is to be read as a reference to 6 months.
Part 3
Reporting of regulated transactions
Statement of regulated transactions
10    (1)
The responsible person in relation to a permitted participant must
10
include in any return required to be prepared under section 120 a
statement of regulated transactions entered into by the permitted
participant.
      (2)
The statement must comply with paragraphs 11 to 15.
      (3)
For the purposes of those paragraphs a regulated transaction is a
15
recordable transaction—
(a)
if the value of the transaction is more than £7,500, or
(b)
if the aggregate value of it and any other relevant benefit
or benefits is more than that amount.

In paragraph (b) “relevant benefit” means any relevant donation
20
(within the meaning of Schedule 15) or regulated transaction
made by, or entered into with, the person with whom the
regulated transaction was entered into.
Identity of authorised participants
11
The statement must record, in relation to each recordable
25
transaction to which an authorised participant was a party, the
information about the authorised participant which is, in
connection with transactions entered into by political parties,
required to be recorded in transaction reports by virtue of
paragraph 2 of Schedule 6A.
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Identity of unauthorised participants
12
The statement must record, in relation to each recordable
transaction to which a person other than an authorised participant
was a party—
(a)
the name and address of the person;
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(b)
the date when, and the manner in which, the transaction
was dealt with in accordance with sub-paragraphs (3) to
(5) of paragraph 5 or those sub-paragraphs as applied by
paragraph 5(6) or 6(2).
Details of transaction
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13    (1)
The statement must record, in relation to each recordable
transaction, the information about the transaction which is, in

Parliamentary Voting System and Constituencies Bill
Schedule 5 — Control of loans etc to permitted participants
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connection with transactions entered into by political parties,
required to be recorded in transaction reports by virtue of
paragraph 5(2), (3) and (4) of Schedule 6A (read with any
necessary modifications).
      (2)
The statement must record, in relation to each recordable
5
transaction of a description mentioned in paragraph 2(1) or (2)
above, the information about the transaction which is, in
connection with transactions entered into by political parties,
required to be recorded in transaction reports by virtue of
paragraph 6 of Schedule 6A.
10
      (3)
The statement must record, in relation to each recordable
transaction of a description mentioned in paragraph 2(3)(a) above,
the information about the transaction which is, in connection with
transactions entered into by political parties, required to be
recorded in transaction reports by virtue of paragraph 7(2)(b), (3)
15
and (4) of Schedule 6A.
Changes
14    (1)
Where another authorised participant has become a party to a
regulated transaction (whether in place of or in addition to any
existing participant), or there has been any other change in any of
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the information that is required by paragraphs 11 to 13 to be
included in the statement, the statement must record—
(a)
the information as it was both before and after the change;
(b)
the date of the change.
      (2)
Where a recordable transaction has come to an end, the statement
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must—
(a)
record that fact;
(b)
record the date when it happened;
(c)
in the case of a loan, state how the loan has come to an end.
      (3)
For the purposes of sub-paragraph (2), a loan comes to an end if—
30
(a)
the whole debt (or all the remaining debt) is repaid;
(b)
the creditor releases the whole debt.
Total value of non-recordable transactions
15
The statement must record the total value of any regulated
transactions that are not recordable transactions.
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Part 4
Supplemental
Non-disclosure with intent to conceal
16    (1)
This paragraph applies where, on an application made by the
Commission, the court is satisfied that any failure to comply with
40
a requirement of Part 3 of this Schedule in relation to—
(a)
any transaction entered into by the permitted participant,
or

Parliamentary Voting System and Constituencies Bill
Schedule 5 — Control of loans etc to permitted participants
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143

(b)
any change made to a transaction to which the permitted
participant is a party,

was attributable to an intention on the part of any person to
conceal the existence or true value of the transaction.
      (2)
The court may make such order as it thinks fit to restore (so far as
5
is possible) the parties to the transaction to the position they
would have been in if the transaction had not been entered into.
      (3)
An order under this paragraph may in particular—
(a)
where the transaction is a loan or credit facility, require
that any amount owed by the permitted participant be
10
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, or the transaction is an arrangement by
which any form of security is given, require that the
security be discharged.
15
Proceedings under paragraphs 5 and 16
17    (1)
This paragraph has effect in relation to proceedings on an
application under paragraph 5(4) or 16.
      (2)
The court is—
(a)
in England and Wales, the county court;
20
(b)
in Northern Ireland, the county court.

In Scotland, the court is the sheriff and the proceedings are civil
proceedings.
      (3)
The standard of proof is that applicable to civil proceedings.
      (4)
An order may be made whether or not proceedings are brought
25
against any person for an offence under paragraph 8 or section
123.
      (5)
An appeal against an order made by the sheriff may be made to
the Court of Session.
      (6)
Rules of court in any part of the United Kingdom may make
30
provision—
(a)
with respect to applications or appeals from proceedings
on such applications;
(b)
for the giving of notice of such applications or appeals to
persons affected;
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(c)
for the joinder, or in Scotland sisting, of such persons as
parties;
(d)
generally with respect to procedure in such applications or
appeals.
      (7)
Sub-paragraph (6) does not affect any existing power to make
40
rules.
Interpretation
18    (1)
In this Schedule—

Parliamentary Voting System and Constituencies Bill
Schedule 6 — The alternative vote system: further amendments
Part 1 — Amendments of the parliamentary elections rules
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“authorised participant” is to be construed in accordance
with paragraph 4 (and see paragraph 1(5));
“connected transaction” has the meaning given by paragraph
2(9);
“credit facility” has the meaning given by paragraph 2(11);
5
“permitted participant” is to be construed in accordance with
paragraph 1;
“regulated transaction” is to be construed in accordance with
paragraph 2.
      (2)
For the purposes of any provision relating to the reporting of
10
transactions, anything required to be done by a permitted
participant in consequence of its being a party to a regulated
transaction must also be done by it, if it is a party to a transaction
of a description mentioned in paragraph 2(3)(a), as if it were a
party to the connected transaction.”
15
Schedule 6
Section 7

The alternative vote system: further amendments
Part 1
Amendments of the parliamentary elections rules
1
Schedule 1 to the 1983 Act (parliamentary elections rules) is amended as
20
follows.
2
For rule 18 (poll to be taken by ballot) there is substituted—
“18
The votes at the poll shall be given by ballot in accordance with
rule 37A below, the result shall be ascertained in accordance with
rule 45A below and the successful candidate shall be declared to
25
have been elected.”
3
In rule 29 (equipment of polling stations), in paragraph (5), for the words
after “the notice” there is substituted—

“Remember—use 1, 2, 3 etc at this election—this is an election using the

alternative vote system.

30

Put the number 1 next to the name of the candidate who is your first

choice (or your only choice, if you want to vote for only one candidate).

You can also put the number 2 next to your second choice, 3 next to

your third choice, and so on.

You can mark as few or as many choices (up to the number of

35

candidates) as you wish.

Do not use the same number more than once.

Put no other mark on the ballot paper, or your vote may not be

counted.”

Parliamentary Voting System and Constituencies Bill
Schedule 6 — The alternative vote system: further amendments
Part 1 — Amendments of the parliamentary elections rules
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4
In rule 44 (attendance at counting of votes), in paragraph (5), for “the
candidate for whom the vote is given” there is substituted “the candidates to
whom votes are allocated under rule 45A below”.
5     (1)
In rule 46 (re-count), for paragraph (1) there is substituted—
    “(1)
At the time when any stage of the counting or re-counting of the
5
votes is completed, a candidate or candidate’s election agent who
is then present may request the returning officer to have the votes
re-counted or again re-counted in respect of any or all of the stages
so far completed.
     (1A)
The returning officer may refuse to comply with a request under
10
paragraph (1) above if in the officer’s opinion it is unreasonable.”
      (2)
In paragraph (2) of that rule, after “on the completion of” there is inserted
“any stage of”.
      (3)
After that paragraph there is inserted—
    “(3)
At any time before the declaration of the result, the returning
15
officer may, if the officer thinks fit, have the votes re-counted or
again re-counted in respect of any or all of the stages.”
6     (1)
In rule 47 (rejected ballot papers), in the heading there is inserted at the end
“and invalid markings”.
      (2)
In paragraph (1) of that rule—
20
(a)
for sub-paragraph (b) there is substituted—
“(aa)
on which the number 1 has not been marked
against the name of any of the candidates, or
(b)
on which the number 1 has been marked against
the name of more than one candidate, or”,
25
(b)
in sub-paragraph (d), for “void for uncertainty” there is substituted
“is marked in a way that does not indicate a clear choice as to the
voter’s first (or only) preference”;
(c)
for the words after that sub-paragraph there is substituted “shall,
subject to the following provisions, be rejected as void and not
30
counted at any stage.”
      (3)
For paragraph (2) of that rule there is substituted—
    “(2)
A ballot paper on which a number is marked elsewhere than in a
proper place shall not be deemed to be void for that reason alone.
     (2A)
If a ballot paper is marked with the same number (other than the
35
number 1) against the name of more than one candidate, that
number (each time it appears) and any numbers after the repeated
numbers shall be ignored for the purposes of rule 45A above.
     (2B)
If—
(a)
one or more preferences are validly marked on a ballot
40
paper, and
(b)
other marks are made on the paper which do not indicate
a clear intention as to the voter’s next preference,

those other marks shall be ignored for the purposes of rule 45A
above.
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