Related director agreements

Related director agreements - 5 January 2009

The Companies Act requires that a company may not take part in an arrangement under which another person enters into a transaction that, if it had been entered into by the company, would have required approval under sections 197, 198, 200 or 201, and that person, in pursuance of the arrangement obtains a benefit from the company or a body corporate associated with it, or arrange for the assignment to it of any rights, obligations or liabilities under a transaction that, if it had been entered into by the company, would have required such approval, unless the arrangement in question has been approved by a resolution of the members of the company.

Exceptions apply, subject to satisfying qualifying conditions, some of which relate to levels of expenditure, in the following:

Expenditure on company business
Expenditure on defending proceedings
Expenditure in connection with regulatory action or investigation
Expenditure for minor and business transactions
Certain intra-group transactions

Related director agreements

Introduction

Historical timetable

The Act in depth

General

Directors

Accounts & auditors

Visitor Register Now
Our Services Business News Business Forum Personal Advisor Tax Centre IR35 Centre Online Services	Home > > Limited companies > Companies Act 2006 > Related director agreements - 5 January 2009 Related director agreements Related director agreements - 5 January 2009 Related director agreements Related director agreements - 5 January 2009 The Companies Act requires that a company may not take part in an arrangement under which another person enters into a transaction that, if it had been entered into by the company, would have required approval under sections 197, 198, 200 or 201, and that person, in pursuance of the arrangement obtains a benefit from the company or a body corporate associated with it, or arrange for the assignment to it of any rights, obligations or liabilities under a transaction that, if it had been entered into by the company, would have required such approval, unless the arrangement in question has been approved by a resolution of the members of the company. Exceptions apply, subject to satisfying qualifying conditions, some of which relate to levels of expenditure, in the following: Expenditure on company business Expenditure on defending proceedings Expenditure in connection with regulatory action or investigation Expenditure for minor and business transactions Certain intra-group transactions Introduction Companies Act 2006 Summary of sections of the Act Historical timetable Provisions commenced in January 2007 Provisions commenced in April 2007 Provisions commenced from 1 October 2007 Provisions commenced from 6 April 2008 Provisions commenced from 1 October 2008 Provisions commenced from 1 October 2009 The Act in depth General Forming a company Choosing a name for your company Changing the company name Registered office A company's members Shares and share capital Directors Appointment of directors General duties of directors Directors transactions requiring members approval Loans to directors Related director agreements Directors' service contracts Directors' liabilities Records of directors meetings Company secretary Accounts & auditors Accounting records Financial year Group accounts Directors' report Signing of accounts: directors and auditors Appointment of auditors Auditor's rights to information