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Version status: In force | Document consolidation status: Updated to reflect all known changes
Version date: 1 October 2007 - onwards
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200. Loans or quasi-loans to persons connected with directors: requirement of members' approval

(1) This section applies to a company if it is -

(a) a public company, or

(b) a company associated with a public company.

(2) A company to which this section applies may not -

(a) make a loan or quasi-loan to a person connected with a director of the company or of its holding company, or

(b) give a guarantee or provide security in connection with a loan or quasi-loan made by any person to a person connected with such a director,

unless the transaction has been approved by a resolution of the members of the company.

(3) If the connected person is a person connected with a director of the company's holding company, the transaction must also have been approved by a resolution of the members of the holding company.

(4) A resolution approving a transaction to which this section applies must not be passed unless a memorandum setting out the matters mentioned in subsection (5) is made available to members -

(a) in the case of a written resolution, by being sent or submitted to every eligible

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