Labour leader broke donation rules

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The committee ruling followed a five-two vote, said convener Keith Brown.

After hearing a letter in which Ms Alexander said she had acted in good faith, and on the advice of officials, the committee went into private session to consider what action to take.

The finding by the Standards Committee was the latest twist in the affair that began with Ms Alexander's successful campaign to succeed Jack McConnell as Scottish Labour leader last year.

A complaint was laid with Holyrood standards watchdogs that she had failed to register within the required timescale in her register of interests, 10 donations above the £520 value made to her leadership campaign.

Delivering the written rule by the Standards Committee, convener Keith Brown said Ms Alexander sought advice from the Standards Committee clerks on November 8, and was told she did not need to register the donations.

But Dr Jim Dyer, Holyrood's Standards Commissioner, sought legal advice and concluded the donations came within the scope of the legislation on members' interests.

"The Standards Commissioner concluded that although she did not have direct ownership or control of the campaign funds, Ms Alexander had a beneficial interest in them," said Mr Brown.

"He concluded that a fair-minded and impartial observer would consider that the interests could influence a person acting as an MSP or give the appearance of prejudicing that person's ability to act impartially," said Mr Brown.

After sitting in private for half an hour, Mr Brown said the committee would continue its consideration "of sanctions or otherwise" on Thursday, again in private.