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

335 Minor and business transactions. E+W+S

(1) Section 330(4) does not prohibit a company from entering into a transaction for a person if the aggregate of the relevant amounts does not exceed [F1 £10,000].

(2) Section 330(4) does not prohibit a company from entering into a transaction for a person if—

(a) the transaction is entered into by the company in the ordinary course of its business; and

(b) the value of the transaction is not greater, and the terms on which it is entered into are no more favourable, in respect of the person for whom the transaction is made, than that or those which it is reasonable to expect the company to have offered to or in respect of a person of the same financial standing but unconnected with the company.

Textual Amendments

F1 “£10,000" substituted by S.I. 1990/1393, art. 2(b)