268.Section 347H provides that, when proceedings are brought against a director or former director in respect of unauthorised donations or expenditure, it is a defence for the director to show that:
269.Subsection (2) provides that, in the case of directors of a holding company, it will be a defence to show in relation to unauthorised transactions by a subsidiary company that:
270.Subsection (3) provides that, in the case of a wholly-owned subsidiary of the holding company, it is not necessary for the repayment to be approved by the subsidiary company in general meeting.
271.Subsection (4) provides that, in the case of directors of a holding company, it is a defence to show that proceedings have been commenced by the subsidiary against its directors and are being pursued with due diligence by that company unless the subsidiary is wholly owned. Under subsection (5), this defence may only be raised with the leave of the court which may make, on such application for leave, such order as the court thinks fit, including an order adjourning or permitting the continuance of the action on such terms and conditions as the court thinks fit.
272.Subsection (6) provides that it is a defence for directors of a holding company of a subsidiary incorporated outside Great Britain to show that:
Commentary on Sections Part IX : Political donations and expenditure by companies New Section 347H : Exemption of directors from liability in respect of unauthorised donations or expenditure