142 Repaying indebtedness142.1 TimingFinancial assistance within Section 678 of the Companies Act 2006 should not be a problem where the target company repays its indebtedness; at least where that indebtedness was repayable on demand. (Of course, financial assistance will not generally be a problem if the target company is a private company.) The position however may be different where the parties expected that the indebtedness would be repaid sometime in the future and the target is effectively repaying early. This only seems to be a problem where the target either has no net assets or has assets
Financial assistance within Section 678 of the Companies Act 2006 should not be a problem where the target company repays its indebtedness; at least where that indebtedness was repayable on demand. (Of course, financial assistance will not generally be a problem if the target company is a private company.) The position however may be different where the parties expected that the indebtedness would be repaid sometime in the future and the target is effectively repaying early. This only seems to be a problem where the target either has no net assets or has assets
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
0330 161 1234