332 Short-term quasi-loans.E+W+S
(1)Subsection (3) of section 330 does not prohibit a company (“the creditor”) from making a quasi-loan to one of its directors or to a director of its holding company if—
(a)the quasi-loan contains a term requiring the director or a person on his behalf to reimburse the creditor his expenditure within 2 months of its being incurred; and
(b)the aggregate of the amount of that quasi-loan and of the amount outstanding under each relevant quasi-loan does not exceed [F1£5,000].
(2)A quasi-loan is relevant for this purpose if it was made to the director by virtue of this section by the creditor or its subsidiary or, where the director is a director of the creditor’s holding company, any other subsidiary of that company; and “the amount outstanding” is the amount of the outstanding liabilities of the person to whom the quasi-loan was made.
Textual Amendments
F1 “£5,000" substituted by Companies Act 1989 (c. 40, SIF 27), ss. 138(a), 213(2) (subject to the saving provision in S.I. 1990/1392, art. 5)