Reform's former deputy leader says the party’s new constitution “puts Farage’s leadership in a virtually unassailable position”.
Instead of setting up an unincorporated association like most political parties do, Nigel Farage has formed a new not-for-profit private company, Reform 2025 Ltd, to run the party.
The Reform UK leader has set up a private company limited by guarantee with no shareholders, which he claims is part of handing over control to the party’s 200,000 members.
Reform 2025 has two directors listed: Farage and the party’s chair Zia Yusuf. According to a document filed to Companies House, Farage and Yusuf are guarantors, meaning they would be liable if the company were to be wound up.
Companies House states that guarantors of companies limited by guarantee control the company and make important decisions but typically do not take profits, which are kept within the company or used for other purposes.
Earlier this month, Farage said: “There’s nobody keener to get rid of the ownership of the party than me”.
“I still have this massive liability around my neck. If it all goes wrong or we get sued for millions it’s me that picks up the bill,” he added.
Reform UK Party Limited was set up in 2018, with Farage owning 53% of its shares.
According to a report in the Financial Times, Reform UK have reportedly now sent their new constitution to the Electoral Commission, which has approved the new party structure today.
Ben Habib, Reform’s former deputy leader, told the FT that the new constitution was “flawed” and “puts Farage’s leadership in a virtually unassailable position”.
Yusuf, said: We are assembling the governing board, in line with the constitution.”
The multi-millionaire businessman and Reform’s chair added: “ This was an important step in professionalising the party. We will soon have more exciting announcements about Reform UK as we prepare for government.”
Other major political parties, including Labour, the Liberal Democrats, Greens and the Conservatives are set up as unincorporated associations, which cannot enter into a contract, own property or make a profit.
While Farage claims that he has handed over ownership of Reform to members, as the New Statesman’s Will Dunn previously noted, members’ voting rights will be decided by the company’s articles of association, which haven’t been made public.
Olivia Barber is a reporter at Left Foot Forward
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