Does the Reform Party need Reform?
By
John E. Strafford
The Reform Party was a limited company (the
Reform UK Party Limited) with a share capital of fifteen shares. Nigel Farage
owned 9 shares in the company, giving him a controlling majority of 60% The
other shareholders were Richard Tice, who held a third, 5 shares, and Party
Treasurer Mehrtash A'Zami who held 2 shares.
On 10th February 2025 it was announced
that a new company had been formed to take control of The Reform Party. The new company called Reform 2025 Ltd is a
company limited by guarantee. It has
two Guarantors, Nigel Farage and Muhammad Yusuf.
The Reform Party currently has five MPs in
the House of Commons.
The
party also holds representation at the local government level, with most of its
local councillors (approx. two thirds) having defected from the Conservative Party to Reform UK. Following Farage's
resumption of the leadership just before the General Election of 2024 there was
a sharp increase in support for the party. Following the election, it was the
third largest party by popular vote, with 4,117,610 votes achieving 14.3 per
cent of the vote in total. Since then it has gone from strength to
strength. It’s membership is now over
200,000, more than double the Conservative Party membership.
Reform
UK’s conference in September 2024 voted to give members more control over the
party’s policies and leadership. The
question is “was this achieved”?
A resolution to approve
Reform UK’s new constitution was passed by a show of hands at the party’s
conference in Birmingham. Members voted to adopt the new constitution, which
sets out party rules and the responsibilities of the leadership.
“We have come of age and
we are a properly constituted party,” Nigel Farage said, with him claiming he
is "giving ownership of the party and the big decisions over to the
members".
Not quite, see below:
The party’s chairman Zia
Yusuf (Muhammad) said the party would become a not-for-profit organisation
governed by the party’s new rulebook, with no shareholders.
Under the new
constitution, the party's board and the leader are responsible for setting
policy, with input from members at conferences.
Members will be able to
remove Farage - or any other party leader - in a no-confidence vote.
A vote can be triggered if
50% of all Party members write to the Chairman requesting a motion of no
confidence.
Not credible. If a no confidence motion was tabled and
looked as though it might pass Reform 2025 Ltd could threaten to disband the
Part or actually disband it whilst retaining all the data in the Party!
Reform MPs can also force
a vote of no confidence if 50 of them, or 50% of them, write to the chairman
requesting one. But this only applies if there are more than 100 Reform MPs in
Parliament - a high bar.
The Reality
The Reform Party was owned
by Reform Party UK Ltd, the controlling shareholder of which is Nigel Farage,
so at any time Nigel Farage had the power if he so wished to dissolve the
political Party. The Reform Party was
in effect controlled by a Dictator. At
any time Nigel Farage could sell his shares and another Dictator could take
over. The shareholders could not take a profit on their shares because in the
Articles of Association of the company it states:
Not For Profit
The Company is not
established or conducted for private gain and shall not pay any dividend to any
member: any surplus or assets remaining when the Company is dissolved or wound-up
shall be donated to such charity or not for profit organisation as the Board
shall determine.
Of course the shareholders
can always change the Articles of Association!
This situation changed
when Reform 2025 Ltd was formed and the Reform Party was in effect transferred
to it, but the Party’s Constitution has not been changed so where do we stand
now. In effect, the Reform Party is now
owned by Reform 2025 Ltd which has two Directors and two shareholders who are
limited by guarantee, so we have moved from a Dictatorship to an oligarchy of
two people!
So if the Reform Party wish to be a democratic
organisation how should it’s constitution be changed? I set out below the changes required for the
Reform Party to become a democratic organisation.
This
is a draft proposal and comments or proposed alterations are welcome.
Reform Party
Constitution
1 INTERPRETATION
Delete 1.4 “Rules” means Rules
made by the Board under this Constitution.
Insert 1.4 “Rules” means Rules under this
Constitution.
2 NAME AND OBJECTIVES OF THE
PARTY
Name
Delete 2.3 The Party
exists as a Limited Liability Company registered with Companies House
(Registration Number xxxxxxxxx) in accordance with the Companies Act 2006.
3 ACTIVITIES OF THE PARTY
Delete 3.4.8 undertake any
or all lawful activities under the Companies Acts.
4 PARTY MEMBERSHIP
Delete 4.1 “by the Board”
Insert
4.1 after made “by the Party in General Meeting”
Delete 4.3 after vote in “ such” and after “ballots” delete “as the
Board shall in their absolute discretion decide.”
5 PARTY ORGANISATION AND PARTY CONFERENCE
Delete “5.1 The Board may from time to time make rules
concerning the organisation of such Party structures which are not provided for
in this Constitution.”
Conference
Insert 5.5 “Motions to change the Party Constitution
shall be implemented if passed by 60% of those present and voting.”
EGM
Delete 5.5 “fifty per cent (50%)”
Insert 5.5 after at least “five per cent (5%)
6
THE PARTY BOARD (BOARD)
Delete 6.1 after of the Party “in particular for the
purposes of company law.”
Powers of the Board
Delete 6.2.7.
Composition of the Board
Delete 6.3 “normally”
Delete 6.3.1 “and on the List elected in a party wide
ballot
Insert 6.3.1 after Good Standing elected at an Annual General Meeting of the
Party to which all members of the Party are invited.
Delete 6.3.1 “Board may”
Insert 6.3.1 after are invited “The members of the Party
in General Meeting shall”
Insert 6.3.4 after Chairman; “two Deputy Chairmen,
Chairman of the Candidates Committee, all of whom shall be elected by the Party
members in General Meeting.
Insert 6.4 after appoint “two”
Delete 6.5 “Party Chairman”
Elections and term of office
Delete 6.15 “2 years” and “at the discretion of the Party
Leader”
Insert 6.15 after term of “3 years”
Suspension/expulsion from Board
Insert 6.23 after expel a “appointed”
No confidence motions
Delete 6.28.2 “50%”
Insert 6.28.2
after by “5%”
Delete 6.31 “Board”
Insert 6.31 after by the “Party in General Meeting”.
7 THE
PARTY LEADER
Status
Delete: 7.3.2 “shall, subject to the approval…………an EGM
of the party.”
Election
Delete: 7.5 “Upon the passing…………..of its passage, (the
initial Leadership Term)”
Delete 7.6.3 “The Board may make Rules concerning
eligibility, nomination and election of candidates for Party Leader.”
Delete 7.7 “ The Board may………….post of Party Leader”
Insert 7.9.1 “If only one nomination is received then a
ballot of Party members will be conducted to confirm the appointment of
Leader. If confirmation does not
receive over 50 % of those voting, the process for electing a Leader shall be
started again.”
8 THE PARTY CHAIRMAN
Status and duties
Delete: “8.1 The Chairman appointed…………….. a full time
employee of the Party.”
Insert: “8.1 The Party Chairman shall be elected by the
members of the Party at an Annual General Meeting of the Party to which all
members are invited.”
Insert: 8.1.1 The Party Chairman shall make a report on
the state of the party organisation at the Annual General Meeting of the Party.
12 CANDIDATES
Selection of candidates
Delete: “12.10 The Board……………organisation
of candidates.”
13 THE CONSTITUTION; APPROVAL AND
AMENDMENT
Delete: 13.4.2 “50%”
Insert: 13.4.2 after
request of “5%”
14 PARTY
RULE BOOK
Delete 14.1 “may, in the
absolute discretion of the Board”
Insert 14.1 after Rulebook
“will”
Delete: “14.2 Notwithstanding……………of
this Constitution.”
Reform's shift to a
non-profit, member-owned structure would limit its ability to distribute profits,
requiring all funds to support its political objectives, such as campaigning
and member engagement, potentially driving a focus on grassroots mobilization
and efficient resource allocation.
At present as a
non-profit Company limited by guarantee, Reform 2025 Ltd must comply with
strict financial transparency and governance rules, influencing its strategy to
prioritize accountability and public trust to maintain credibility ahead of
elections.