Does the Reform Party need Reform?

 

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 10^th 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.