Guidance Notes: Loans Involving Directors

This Guidance Note: Loans Involving Directors is a practical guide for private companies covering the making of loans by companies to directors, as well as the issues that need to be considered when a director (or a shareholder) makes a loan to a company.

Topics covered

• the legislative rules (primarily under the Companies Act 2006) governing the making of loans and guarantees to directors;
• exceptions for loans under £10,000 in aggregate;
• other exceptions to the requirement for shareholder approval;
• loans involving connected persons;
• loans from directors (or shareholders) to a company;
• substantial property transactions; and
• conflicts of interest.

Who this guidance is for

This Guidance Note is a useful ‘aide-memoire’ to a company secretary or company director considering the issues surrounding directors and loans.

Guidance Notes: Loans Involving Directors is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.