Commentary

Section 139.1 Permissible transactions under Section 678(2)

COMPANIES vol 11 acquisitions, mergers, demergers
| Commentary

Section 139.1 Permissible transactions under Section 678(2)

| Commentary

139 Transactions which are not caught by Companies Act 2006 Section 678

139.1 Permissible transactions under Section 678(2)

As financial assistance must be given directly or indirectly for the purpose of an acquisition of shares in order for it to be unlawful, the giving of financial assistance is permissible if:

  1. 139.1.1

        the company’s principal purpose in giving the assistance is not the acquisition of shares, or the giving of the assistance is for that purpose, but is merely an incidental part of some larger purpose of the company; and

  2. 139.1.2

        the assistance is given in good faith in the interests of

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