Loans to directors

The Companies Act permits a company to make a loan to a director. A loan or guarantee must be approved by a resolution of the members of the company. A resolution giving the necessary approval can only be passed when a memorandum setting out required matters about the loan is made available to the members.

Information to be included in the memorandum:

  • The nature of the transaction
  • The amount of the loan and its purpose
  • The extent of the company's liability under any transaction connected with the loan

There are some exceptions to the requirement to gain member approval including loans where the aggregate value does not exceed £10,000, or where this relates to a credit transaction, if applicable, does not exceed £15,000 or is entered into in the ordinary course of the company's business.

If you’re interested in working with us and wish to discuss your requirements then please call us on 44 (0) 141 221 2257 or email contact@thomasbarrie.co.uk

Atlantic House
1A Cadogan Street
Glasgow
G2 6QE

 

There is another entrance to the building at 45 Hope Street, G2 6AE.

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