With all the focus on the U.S. presidential election, it can be easy to overlook another election on the other side of the Atlantic Ocean that could prove to be just as consequential. On June 23, voters in the United Kingdom will take to the polls to decide whether the U.K. should remain a member of the European Union. Their decision could have significant political and economic ramifications, not only for Britons and citizens of other EU member-states, but also for U.S. companies that do business in the U.K.
In this article, the 11th of Allen & Overy’s weekly columns on political law issues designed to help in-house legal and compliance personnel manage risks, we turn to the U.K. referendum and the rules that apply to U.S. companies interested in being involved in the debate. U.K. election laws permit companies and their senior employees to play a role in the referendum, either by contributing to one of the campaign groups that have been established to contest the vote, or by taking a public stand on the issue of “Brexit” (British exit from the EU). Doing so, however, implicates complex U,K. campaign finance laws, which are wide-ranging and structured very differently than equivalent U.S. regimes.
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