NATIONAL GRID PLC | Political donations at NATIONAL GRID PLC

Status
Filed
AGM date
Previous AGM date
Proposal number
18
Resolution details
Company ticker
NG.
Submitted by
Undisclosed filer
Resolution ask
Adopt or amend a policy
ESG theme
  • Governance
ESG sub-theme
  • Lobbying / political engagement
Type of vote
Other management proposal or proxy item
Filer type
Management
Company sector
Utilities
Company HQ country
United Kingdom
Supporting statement
As in previous years, and as a precautionary measure only, the Directors
are seeking shareholders’ authority for the Company to make political
donations and to incur political expenditure, as defined by the 2006 Act.
Part 14 of the 2006 Act, amongst other things, prohibits the Company
and its subsidiaries from making UK political donations or incurring
political expenditure in respect of a political party, other political
organisation or an independent election candidate unless authorised by
the Company’s shareholders (with aggregate donations of £5,000 or less
in any 12 month period not being caught). However, the definitions of
these terms in the 2006 Act are very wide and as a result, bodies, such
as those concerned with policy review, law reform and the representation
of the business community (for example, trade organisations) may be
caught. It could also include special interest groups, such as those
involved with the environment, which the Company and its subsidiaries
may see benefit in supporting, even though these activities are not
designed to support or influence support for a particular party.
The 2006 Act states that all-party parliamentary groups are not political
organisations for these purposes, meaning the authority proposed in this
resolution is not relevant to interactions with such groups.
The Company has no intention of changing its current practice of not
making political donations or incurring political expenditure in the UK
within the ordinary meaning of those words. The Directors consider,
however, that it is in the best interests of shareholders for the Company to
participate in public debate and opinion-forming on matters which affect
its business. To avoid inadvertent infringement of the 2006 Act, the Directors are
seeking shareholders’ authority, on a precautionary basis only, for the
Company and its UK subsidiaries to make political donations and to
incur political expenditure for the period from the date of the AGM to the
earlier of the date of the close of the next annual general meeting or
30 September 2026, up to a maximum aggregate amount of £125,000.
For more information regarding political donations and expenditure,
please refer to page 278 of the Annual Report.

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