Guidance Note: 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.
This Guidance Note includes a discussion of:
• The legislative rules (primarily under the Companies Act 2006) governing
the making of loans & 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.
This Guidance Note is a useful ‘aide-memoire’ to a company secretary or
company director considering the issues surrounding directors and loans.
This Guidance Note is in open format.
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