Commentary

Section 154 Substantial property transactions–Section 190

COMPANIES vol 11 acquisitions, mergers, demergers
| Commentary

Section 154 Substantial property transactions–Section 190

| Commentary

4: COMPLIANCE WITH THE COMPANIES ACT 2006

154 Substantial property transactions–Section 190

In any management buy-out consideration will need to be given to the provisions of Section 190 of the Companies Act 2006. Broadly speaking, the Section prohibits a company from1:

  1. 154.1

        disposing of a substantial non-cash asset to one of its directors or a director of its holding company or any person connected with such director; or

  2. 154.2

        acquiring a substantial non-cash asset from such a director or any person connected with such a director

unless the arrangement is first approved by a resolution of the members of the

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