Commentary

7.5 Enquiries by party to transaction with a company

COMPANIES vol 10(2) borrowing and debentures
| Commentary

7.5 Enquiries by party to transaction with a company

| Commentary

7.5 Enquiries by party to transaction with a company

Given that, in the absence of a provision to the contrary, a company’s objects are now assumed to be unrestricted1 and that the protection granted by the Companies Act 2006 Section 39 and Section 402 to those dealing with companies is extensive, it may be thought that it is no longer necessary to verify the constitutional ability of a company borrower to enter into a lending transaction. However, some practitioners acting for lenders still have misgivings about relying on the statutory scheme3 and take a cautious approach

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial