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When does a UK company need shareholder approval to deal with a director?

Where a director, or a person connected with one, acquires from or sells to the company a substantial non-cash asset, the members must approve the arrangement. An asset is substantial where its value exceeds £100,000 or exceeds 10 per cent of the company's asset value and is more than £5,000. Without approval the arrangement is voidable and the director must account for any gain and indemnify the company for its loss.

Dela sidan

Source

Source
Companies Act 2006, sections 190 to 196
Acts
Companies Act 2006
Area
Company, accounts and insolvency
Checked
2026-09-22
Companies Act 2006Open the official text ↗

Questions

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