| Commentary

28 Transactions involving directors

| Commentary

28 Transactions involving directors

The provisions of the Companies Act 2006 dealing with substantial property transactions involving directors extend to dealings between a company and a director of its holding company. In such a case, the holding company must also pass an ordinary resolution to approve the transaction1. The Act generally prohibits a company from, inter alia, making loans to its directors unless the shareholders have approved the transaction by an ordinary resolution, and this also applies to loans to directors of its holding company2.

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