PART XIENFORCEMENT OF FAIR DEALING BY DIRECTORS
Restrictions on a company's power to make loans, etc. to directors and persons connected with them
F2Funding of director's expenditure on defending proceedings345A
1
A company is not prohibited by Article 338 from doing anything to provide a director with funds to meet expenditure incurred or to be incurred by him—
a
in defending any criminal or civil proceedings, or
b
in connection with any application under any of the provisions mentioned in paragraph (2).
2
The provisions are—
a
Article 154(3) and (4), and
b
Article 675.
3
Nor does Article 338 prohibit a company from doing anything to enable a director to avoid incurring such expenditure.
4
Paragraphs (1) and (3) only apply to a loan or other thing done as mentioned in those paragraphs if the terms on which it is made or done will result in the loan falling to be repaid, or any liability of the company under any transaction connected with the thing in question falling to be discharged, not later than—
a
in the event of the director being convicted in the proceedings, the date when the conviction becomes final,
b
in the event of judgment being given against him in the proceedings, the date when the judgment becomes final, or
c
in the event of the court refusing to grant him relief on the application, the date when the refusal of relief becomes final.
5
For the purposes of paragraph (4) a conviction, judgment or refusal of relief becomes final—
a
if not appealed against, at the end of the period for bringing an appeal, or
b
if appealed against, at the time when the appeal (or any further appeal) is disposed of.
6
An appeal is disposed of—
a
if it is determined and the period for bringing any further appeal has ended, or
b
if it is abandoned or otherwise ceases to have effect.