(1) Approval is not required under section 217, 218 or 219 (payments requiring members' approval) for a payment made in good faith -
(a) in discharge of an existing legal obligation (as defined below),
(b) by way of damages for breach of such an obligation,
(c) by way of settlement or compromise of any claim arising in connection with the termination of a person's office or employment, or
(d) by way of pension in respect of past services.
(2) In relation to a payment within section 217 (payment by company) an existing legal obligation means an obligation of the company, or any body corporate associated with it, that was not entered into in connection with, or in consequence of, the event giving rise to the payment for loss of office.
(3) In relation to a payment within section 218 or 219 (payment in connection with transfer of undertaking, property or shares) an existing legal obligation means an obligation of the person making the payment that was not entered into for the purposes of,
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