The Companies (Fair Dealing by Directors) (Increase in Financial Limits) Order 1990
Citation and Commencement1.
This Order may be cited as the Companies (Fair Dealing by Directors) (Increase in Financial Limits) Order 1990 and shall come into force on 31st July 1990.
Increase in Financial Limits2.
Part X of the Companies Act 1985 (enforcement of fair dealing by directors) shall be amended as follows:—
(a)
in section 320(2) (substantial property transactions involving directors, etc) for “£1,000” substitute “£2,000” and for “£50,000” substitute “£100,000”;
(b)
in section 335(1) (minor and business transactions) for “£5,000” substitute “£10,000”;
(c)
in section 337(3) (funding of director’s expenditure on duty to company) for “£10,000” substitute “£20,000”;
(d)
in section 340(7) (“value” of transactions and arrangements) for “£50,000” substitute “£100,000”; and
(e)
in section 344(1) (exceptions from section 343) for “£1,000” substitute “£2,000”
This Order increases certain of the financial limits specified in Part X of the Companies Act 1985 (enforcement of fair dealing by directors). The limits in question are the sums specified in sections 320(2), 335(1), 337(3), 340(7), and 344(1). In each case, the sum specified is doubled. Section 138 of the Companies Act 1989 (c. 40) provides for increases in the other financial limits (relating to loans etc to directors) specified in Part X of the Companies Act