Part X Enforcement of Fair Dealing by Directors
Restrictions on a company’s power to make loans, etc., to directors and persons connected with them
333 Inter-company loans in same group.
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.