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Transactions With Directors Requiring Approval of Members

Where a service contract is, or maybe, longer than two years.

This is a complicated area of the Act and we recommend that advice be sought with regard to long term service contracts.

Substantial property transactions.

A company may not enter into an arrangement under which a director of the company or its holding company, or a person connected with such director, acquires or is to acquire from the company (directly or indirectly) a substantial non-cash asset, or the company acquires or is to acquire a substantial non-cash asset (directly or indirectly) from such a director or a person so connected. These provisions apply unless the arrangement has been approved by a resolution of the members of the company or is conditional on such approval being obtained. Substantial is defined in section 191 as an asset that exceeds 10% of the company's asset value and is more than £5,000 or exceeds the sum of £100,000.

Transactions With Directors Requiring Approval of Members

Substantial property transactions.

Introduction

Timetable

The Act In Depth

General

Directors

Accounts & Auditors

	Home > > Limited Companies > Companies Act 2006 > Transactions with directors requiring approval of members Transactions With Directors Requiring Approval of Members Where a service contract is, or maybe, longer than two years. This is a complicated area of the Act and we recommend that advice be sought with regard to long term service contracts. Substantial property transactions. A company may not enter into an arrangement under which a director of the company or its holding company, or a person connected with such director, acquires or is to acquire from the company (directly or indirectly) a substantial non-cash asset, or the company acquires or is to acquire a substantial non-cash asset (directly or indirectly) from such a director or a person so connected. These provisions apply unless the arrangement has been approved by a resolution of the members of the company or is conditional on such approval being obtained. Substantial is defined in section 191 as an asset that exceeds 10% of the company's asset value and is more than £5,000 or exceeds the sum of £100,000. Introduction An Introduction to the Companies Act 2006 Summary of sections of the Act Timetable Provisions commenced in January 2007 Provisions commenced in April 2007 Provisions commenced from 1 October 2007 Provisions commenced from 6 April 2008 Provisions commencing from 1 October 2008 Provisions commencing from 1 October 2009 The Act In Depth General Forming a company Choosing a name for your company Changing the company name Registered office A company's members Shares and share capital Directors Appointment of directors General duties of directors Transactions with directors requiring approval of members Loans to directors Related agreements Directors' service contracts Directors' liabilities Records of directors meetings Company secretary Accounts & Auditors Accounting records Financial year Group accounts Directors' report Signing of accounts: directors and auditors Appointment of auditors Auditor's rights to information

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