Commentary

7.3 Transactions involving directors or their associates

COMPANIES vol 10(2) borrowing and debentures
| Commentary

7.3 Transactions involving directors or their associates

| Commentary

7.3 Transactions involving directors or their associates

The protective provisions contained in the Companies Act 2006 Section 401 do not apply where the parties to the transaction concerned include either a director of the company or of its holding company or a person connected with any such director, in which case the transaction is voidable at the instance of the company2.

However, the transaction is not invalidated against any third party who is not a director of the company or of its holding company, or a person connected with any such director although, in these circumstances, the court has a wide

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