Part 10U.K.A company's directors

Chapter 4U.K.Transactions with directors requiring approval of members

Loans, quasi-loans and credit transactionsU.K.

207Exceptions for minor and business transactionsU.K.

(1)Approval is not required under section 197, 198 or 200 for a company to make a loan or quasi-loan, or to give a guarantee or provide security in connection with a loan or quasi-loan, if the aggregate of—

(a)the value of the transaction, and

(b)the value of any other relevant transactions or arrangements,

does not exceed £10,000.

(2)Approval is not required under section 201 for a company to enter into a credit transaction, or to give a guarantee or provide security in connection with a credit transaction, if the aggregate of—

(a)the value of the transaction (that is, of the credit transaction, guarantee or security), and

(b)the value of any other relevant transactions or arrangements,

does not exceed £15,000.

(3)Approval is not required under section 201 for a company to enter into a credit transaction, or to give a guarantee or provide security in connection with a credit transaction, if—

(a)the transaction is entered into by the company in the ordinary course of the company's business, and

(b)the value of the transaction is not greater, and the terms on which it is entered into are not more favourable, than it is reasonable to expect the company would have offered to, or in respect of, a person of the same financial standing but unconnected with the company.