197 Loans to directors: requirement of members' approval
197 Loans to directors: requirement of members' approval
Companies Act 2006 | Legislation

(1)     A company may not—

(a)     make a loan to a director of the company or of its holding company, or

(b)     give a guarantee or provide security in connection with a loan made by any person to such a director,

unless the transaction has been approved by a resolution of the members of the company.

(2)     If the director is a director of the company's holding company, the transaction must also have been approved by a resolution of the members of the holding company.