Companies Act 2006 Explanatory Notes

Structure

384.This Chapter sets out requirements for member approval in relation to four different types of transaction by a company:

  • long-term service contracts;

  • substantial property transactions;

  • loans, quasi-loans and credit transactions;

  • payments for loss of office.

385.The rules relating to each type of transaction tend to adopt the following structure: they begin with the rule requiring member approval, followed by exceptions to that rule and finally the consequences of breaching that rule.

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