Companies Act 1985

Valid from 16/02/2001

F1 347G Remedy for unauthorised donation or expenditure by non-GB subsidiary. E+W+S

(1) This section applies where—

(a) a company (“the parent company”) has a subsidiary undertaking falling within subsection (1) of section 347E;

(b) the subsidiary undertaking has made any donation or incurred any expenditure to which subsection (1) of section 347C applies; and

(c) the parent company has, in relation to that donation or expenditure, failed to discharge its duty under subsection (2) of section 347E to take all such steps as are mentioned in that subsection.

(2) Subsections (2) to (4) of section 347F shall, in connection with the donation or expenditure made or incurred by the subsidiary undertaking, apply in relation to the holding company as if—

(a) it were a company falling within subsection (1) of that section, and

(b) the donation or expenditure had been made or incurred by it in contravention of section 347C or 347D.

(3) Where only part of the donation or expenditure was not authorised as mentioned in section 347E(2), those subsections shall so apply only to that part of it.

(4) Section 347F(8) applies to any liability of any person arising under section 347F by virtue of this section.

Textual Amendments

F1 Pt. XA (ss. 347A-347K) inserted (16.2.2001) by 2000 c. 41, s. 139, Sch. 19 (with s. 156(6), Sch. 3 para. 12); S.I. 2001/222, art. 2, Sch. 1 Pt. I (subject to transitional provisions in Sch. 1 Pt. II)