Part 10A company's directors
Chapter 4Transactions with directors requiring approval of members
Loans, quasi-loans and credit transactions
214Loans etc: effect of subsequent affirmation
Where a transaction or arrangement is entered into by a company in contravention of section 197, 198, 200, 201 or 203 (requirement of members' approval for loans etc) but, within a reasonable period, it is affirmed—
(a)
in the case of a contravention of the requirement for a resolution of the members of the company, by a resolution of the members of the company, and
(b)
in the case of a contravention of the requirement for a resolution of the members of the company's holding company, by a resolution of the members of the holding company,
the transaction or arrangement may no longer be avoided under section 213.