Family analysis: The High Court in Kirishani v Major [2026] EWHC 835 (Ch) confirmed that the presumption against an intention to create legal relations may apply to unmarried cohabiting couples where the relationship displays sufficient characteristics of domesticity, mutual trust and affection. Sir Anthony Mann held that there is no universal rule applying the presumption to all cohabitees; rather, the inquiry remains an objective assessment of the parties’ intentions in the context of their particular relationship. The decision underlines the evidential difficulty of enforcing informal financial arrangements between partners and highlights the importance of cohabitation agreements where parties intend domestic financial obligations to be legally enforceable. Produced in partnership with David Wilkinson, solicitor and senior knowledge lawyer at Slater Heelis.

The Companies Act 2006 (CA 2006) prohibits: • a public company (or a subsidiary of it, whether a public or private company) from giving financial assistance directly or indirectly for the purpose of: ◦ the acquisition by a person of that public company's shares, whether the assistance is given before or at the same time as the acquisition takes place, or ◦ reducing or discharging a liability incurred for the purpose of acquiring that public company’s shares, where the shares have been acquired by a person (and whether or not the liability was incurred by that person or someone else), and • a public company, which is a subsidiary of a private company, from giving financial assistance directly or indirectly for the purpose of: ◦ the acquisition by a person of that private parent company’s shares, whether the assistance is given before or at the same time as the acquisition takes place, or ◦ to reduce or discharge a liability incurred for the purpose of acquiring that private parent company’s shares, where the shares have been acquired

The term financial assistance refers to financial assistance given from a company to purchase its own shares; financial assistance is prohibited in many jurisdictions.

Certain companies are prohibited from providing financial assistance, directly or indirectly, for the acquisition of their own shares or shares in their holding company. The prohibitions are contained in Chapter 2 of section 677 of the Companies Act 2006 (CA 2006). This Practice Note explains: • the situations in which prohibitions on financial assistance apply, and • other rules of law which must be considered where financial assistance is being offered to a purchaser of shares in the company providing the assistance The financial assistance regime under the Companies Act 1985 (CA 1985) differed in significant ways from the current regime. This Practice Note covers the current regime. For information on the pre-CA 2006 regime, see Practice Note: Financial assistance—fundamentals—How does the CA 2006 prohibition on the giving of financial assistance differ from that which existed under CA 1985?. Why prohibit financial assistance? In the context of the CA 2006, financial assistance refers to assistance given by a company to an entity purchasing shares in that company or its holding company. Commonly, financial assistance could take

The meaning of financial assistance—overview Financial assistance is a term defined by the Companies Act 2006 (CA 2006). In summary, it is any form of assistance given by a company to purchase shares in that company, where finance is given to facilitate that purchase. See below for the types of company to which these rules apply, as well as details of what constitutes financial assistance for these purposes. If assistance is being provided, it will be financial assistance if some form of money or something of monetary value is involved. However, the assistance does not necessarily have to cost anything for the person who is providing it. The following cases give further detail on the meaning of financial assistance: • Charterhouse Investment Trust Ltd v Tempest Diesels Ltd, and • Wallersteiner v Moir The consequences of providing unlawful financial assistance can be severe—see: Consequences of contravening the financial assistance rules, below. Types of companies to which the rules apply The financial assistance rules apply to: • UK public companies • private companies

Section 678(1) of the Companies Act 2006 (CA 2006) provides: “Where a person is acquiring or proposing to acquire shares in a public company, it is not lawful for that company, or a company that is a subsidiary of that company,

Section 678(3) of the Companies Act 2006 (CA 2006) provides: “Where— • a person has acquired shares in a company, and • a liability had been incurred (by that or another person) for the purpose of the acquisition, it is not lawful for that

Section 679(1) of the Companies Act 2006 (CA 2006) provides: “Where a person is acquiring or proposing to acquire shares in a private company, it is not lawful for a public company that is a subsidiary of that company

Section 679(3) of the Companies Act 2006 (CA 2006) provides: “Where— • a person has acquired shares in a private company, and • a liability had been incurred (by that or another person) for the purpose of the acquisition, it

Now administered by the Pension Protection Fund (PPF), the FAS offers help to some people who have lost out on their pension because they were a member of an under-funded defined benefit scheme that started to wind up between 1 January 1997 and 5 April 2005. The FAS applies only where: • the scheme did not have enough money to pay members’ benefits and the employer cannot pay the shortfall because it is insolvent, no longer exists or no longer has to meet its commitment to pay its debt to the pension scheme, or • the scheme started to wind up after 5 April 2005 but is ineligible for help from the PPF due to the employer becoming insolvent before this date Assistance is also payable to the survivor of a pension scheme member and to certain surviving dependants.

Whenever any acquisition of a company’s shares is contemplated, careful consideration should be given as to whether the statutory prohibition on the giving of financial assistance applies. What is the prohibition on the giving of financial assistance? The Companies Act 2006 (CA 2006) prohibits: • a public company (or a subsidiary of it, whether a public or private company) from giving financial assistance directly or indirectly for the purpose of: ◦ the acquisition by a person of that public company's shares, whether the assistance is given before or at the same time as the acquisition takes place, or ◦ reducing or discharging a liability incurred for the purpose of acquiring that public company’s shares, where the shares have been acquired by a person (and whether or not the liability was incurred by that person or someone else) • a public company, which is a subsidiary of a private company, from giving financial assistance directly or indirectly for the purpose of: ◦ the acquisition by a person of that private parent company’s shares, whether the assistance is given before

Financial assumptions relate to future market conditions; they include assumptions for future inflation, salary increases and discount rates.