Companies Act 1985 (c. 6)

Part X U.K. Enforcement of Fair Dealing by Directors

Restrictions on a company’s power to make loans, etc., to directors and persons connected with them E+W+S

333 Inter-company loans in same group. E+W+S

In the case of a relevant company which is a member of a group of companies (meaning a holding company and its subsidiaries), paragraphs (b) and (c) of section 330(3) do not prohibit the company from—

(a) making a loan or quasi-loan to another member of that group; or

(b) entering into a guarantee or providing any security in connection with a loan or quasi-loan made by any person to another member of the group,

by reason only that a director of one member of the group is associated with another.