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Financial Assistance in United Kingdom

Definition of Financial Assistance

In accordance with the work A Dictionary of Law, this is a description of Financial Assistance : (in company law)

A loan, guarantee, security, indemnity, or gift by a registered company or any of its subsidiaries made for the purpose of assisting someone to acquire its shares. Under the Companies Act 1985, this is unlawful unless it can be shown that the company’s principal purpose for giving the assistance was not to finance the acquisition of its shares or that the assistance was an incidental part of another, larger, purpose of the company. A *private company may make such transactions, however, if the directors make a declaration, supported by the company’s auditors, to the effect that the company is able to pay all its debts for at least one year following the assistance being given. In addition, the Companies Act 1985 lays down a strict timetable for providing the assistance, which must be complied with by the private company.

Financial assistance for purchase of its own shares (ss677–683)

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(2016, 06). Financial Assistance lawi.org.uk Retrieved 10, 2021, from https://lawi.org.uk/financial-assistance/

06 2016. 10 2021 <https://lawi.org.uk/financial-assistance/>

"Financial Assistance" lawi.org.uk. lawi.org.uk, 06 2016. Web. 10 2021. <https://lawi.org.uk/financial-assistance/>

"Financial Assistance" lawi.org.uk. 06, 2016. Accesed 10 2021. https://lawi.org.uk/financial-assistance/

Agostino Von Hassell, 'Financial Assistance' (lawi.org.uk 2016) <https://lawi.org.uk/financial-assistance/> accesed 2021 October 28

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Schema Summary

  • Article Name: Financial Assistance
  • Author: Agostino Von Hassell
  • Description: Definition of Financial Assistance In accordance with the work A Dictionary of Law, this is a description of Financial [...]

This entry was last updated: June 15, 2016


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