166. Transactions between a company and one of its directors.

A company may not enter into an arrangement under which a director1, or a person connected2 with a director, acquires a substantial non-cash asset from the company unless the arrangement has been approved by a resolution of the members of the company or is conditional on such approval being obtained3. This restriction covers freehold and leasehold transactions and options made between the director and the company. Similarly, arrangements under which the company purchases assets from one of its directors also require approval