C6C5Part 10A company's directors

Annotations:
Modifications etc. (not altering text)
C6

Pts. 1-39 modified (31.12.2020) by Regulation (EC) No. 2157/2001, Art. AAA1(3) (as inserted by The European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1298), regs. 1, 97 (with regs. 140-145) (as amended by S.I. 2020/523, regs. 1(2), 5(a)-(f)); 2020 c. 1, Sch. 5 para. 1(1))

Chapter 4Transactions with directors requiring approval of members

Payments for loss of office

I1C4C7216C3C2C1Amounts taken to be payments for loss of office

1

This section applies where in connection with any such transfer as is mentioned in section 218 or 219 (payment in connection with transfer of undertaking, property or shares) a director of the company—

a

is to cease to hold office, or

b

is to cease to be the holder of—

i

any other office or employment in connection with the management of the affairs of the company, or

ii

any office (as director or otherwise) or employment in connection with the management of the affairs of any subsidiary undertaking of the company.

2

If in connection with any such transfer—

a

the price to be paid to the director for any shares in the company held by him is in excess of the price which could at the time have been obtained by other holders of like shares, or

b

any valuable consideration is given to the director by a person other than the company,

the excess or, as the case may be, the money value of the consideration is taken for the purposes of those sections to have been a payment for loss of office.