Companies Act, 1990
Arrangements of certain value. |
32.—(1) Section 31 shall not prohibit a company from entering into an arrangement with a director or a person connected with a director if— | |
(a) the value of the arrangement, and | ||
(b) the total amount outstanding under any other arrangements entered into by the company with any director of the company, or any person connected with a director, | ||
together, is less than ten per cent of the company's relevant assets. | ||
(2) For the purposes of this section— | ||
(a) a company enters an arrangement with a person if it makes a loan or quasi-loan to, or enters into a credit transaction as creditor for, that person, and | ||
(b) the amount of a company's relevant assets shall be determined in accordance with section 29 (2). |