Companies Act 1985

158 Time for giving financial assistance under s. 155. E+W+S

(1) This section applies as to the time before and after which financial assistance may not be given by a company in pursuance of section 155.

(2) Where a special resolution is required by that section to be passed approving the giving of the assistance, the assistance shall not be given before the expiry of the period of 4 weeks beginning with—

(a) the date on which the special resolution is passed, or

(b) where more than one such resolution is passed, the date on which the last of them is passed,

unless, as respects that resolution (or, if more than one, each of them), every member of the company which passed the resolution who is entitled to vote at general meetings of the company voted in favour of the resolution.

(3) If application for the cancellation of any such resolution is made under section 157, the financial assistance shall not be given before the final determination of the application unless the court otherwise orders.

(4) The assistance shall not be given after the expiry of the period of 8 weeks beginning with—

(a) the date on which the directors of the company proposing to give the assistance made their statutory declaration [F1 or statement] under section 155, or

(b) where that company is a subsidiary and both its directors and the directors of any of its holding companies made such a declaration [F1 or statement], the date on which the earliest of the declarations [F1 or statements] is made,

unless the court, on an application under section 157, otherwise orders.

Textual Amendments

F1 Words in s. 158(4) inserted (22.12.2000) by S.I. 2000/3373, art. 31(2)