C5Part 10A company's directors

Annotations:
Modifications etc. (not altering text)

Chapter 4Transactions with directors requiring approval of members

Loans, quasi-loans and credit transactions

I1C4C6199C1C2C3Meaning of “quasi-loan” and related expressions

1

A “quasi-loan” is a transaction under which one party (“the creditor”) agrees to pay, or pays otherwise than in pursuance of an agreement, a sum for another (“the borrower”) or agrees to reimburse, or reimburses otherwise than in pursuance of an agreement, expenditure incurred by another party for another (“the borrower”)—

a

on terms that the borrower (or a person on his behalf) will reimburse the creditor; or

b

in circumstances giving rise to a liability on the borrower to reimburse the creditor.

2

Any reference to the person to whom a quasi-loan is made is a reference to the borrower.

3

The liabilities of the borrower under a quasi-loan include the liabilities of any person who has agreed to reimburse the creditor on behalf of the borrower.