CHARTERED ACCOUNTANTS 
CHARTERED TAX ADVISERS BUSINESS DEVELOPMENT CONSULTANTS
CHARTERED TAX ADVISERS BUSINESS DEVELOPMENT CONSULTANTS
CHARTERED TAX ADVISERS BUSINESS DEVELOPMENT CONSULTANTS
Home > > Limited Companies > Companies Act 2006 > Transactions with directors requiring approval of members
Where a service contract is, or maybe, longer than two years.
This is a complicated area of the Act and we recommend that advice be sought with regard to long term service contracts.
A company may not enter into an arrangement under which a director of the company or its holding company, or a person connected with such director, acquires or is to acquire from the company (directly or indirectly) a substantial non-cash asset, or the company acquires or is to acquire a substantial non-cash asset (directly or indirectly) from such a director or a person so connected. These provisions apply unless the arrangement has been approved by a resolution of the members of the company or is conditional on such approval being obtained. Substantial is defined in section 191 as an asset that exceeds 10% of the company's asset value and is more than £5,000 or exceeds the sum of £100,000.
For further details email Eacotts on services@eacotts.com or call 01628 665432
Eacotts Chartered Accountants and Chartered Tax Advisers
Servicing the Thames Valley, Berkshire, Buckinghamshire and the UK
This document is for guidance only and professional advice should be sought before acting on the information contained. No responsibility will be accepted by Eacotts for loss occasioned as a result of action taken, or refrained from, in consequence of the contents
Eacotts Limited is a company registered in England and Wales.
Company number 4708201. Registered Office: Grenville Court, Britwell Road, Burnham SL1 8DF
Visit our partner site - PayWithCare Payroll Processing Company UK - http://www.paywithcare.com
