What Loans can be Made to Directors?
This Guidance Note Loans & Directors and related documents listed below
deal with the law surrounding loans made to directors as modified by the
Companies Act 2006.
This Guidance Note (which is part of a series of guidance notes for the
Company Secretary) covers the following:
• Loans to directors and provision of guarantees
• Exception for loans under £10,000 in aggregate
• Connected persons
• Practical steps for approval of a loan
• Loan Agreements
This Guidance Note on Loans & Directors refers the user to other
documents, including sample loan agreements, board minutes, and
shareholders’ resolutions. These documents can be accessed by clicking on
the links below.
Shareholders’ Ordinary Resolution for Approving Loan to a Director or
Acting as Guarantor for a Director CO.CA.MR.12
Board Minutes – Consider Director’s Loan and Call General Meeting
Board Minutes – Declaration Of Director's Interests CO.CA.DIR.16
General meeting of Shareholders - Minutes CO.CA.GM.07
Director’s Loan Agreement - Secured CO.DLA.01
Director’s Loan Agreement – Unsecured CO.DLA.02
Loan Agreement Long Form CO.CD.03.12a
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