What Loans can be Made to Directors?

IN LIGHT OF THE ECONOMIC CRIME & CORPORATE TRANSPARENCY ACT 2023, THIS TEMPLATE IS CURRENTLY UNDER REVIEW. 

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.

1. Shareholders’ Ordinary Resolution for Approving Loan to a Director or Acting as Guarantor for a Director CO.CA.MR.12 
2. Board Minutes – Consider Director’s Loan and Call General Meeting CO.RAS.02 
3. Board Minutes – Declaration Of Director's Interests CO.CA.DIR.16 
4. General meeting of Shareholders - Minutes CO.CA.GM.07 
5. Director’s Loan Agreement - Secured CO.DLA.01 
6. Director’s Loan Agreement – Unsecured CO.DLA.02 
7. Loan Agreement Long Form CO.CD.03.12a

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