CAP. 32]
Companies
[1984 Ed.
Civil
consequences of transactions
contravening
s. 157H.
[cf. 1980 c. 22, s. 52.)
(b) a company which is a member of a group of companies of which a company referred to in paragraph (a) is a member,
references in this section, except in subsection (3)(c) or (d), to a director shall include references to-
(i) the spouse or any child or step-child of such director: (ii) a person acting in his capacity as the trustee (other than as trustee under an employees' share scheme or a pension scheme) of any trust the beneficiaries of which include the director, his spouse or any of his children or step-children or the terms of which confer a power on the trustees that may be exercised for the benefit of the director, his spouse or any of his children or step-children; and (iii) a person acting in his capacity as partner of that director or of his spouse, child or step-child, or of any trustee referred to in paragraph (ii).
(10) References in subsection (9) to the child or step-child of any person shall include a reference to any illegitimate child of that person, but shall not include a reference to any person who has attained the age of 21 years.
(Added, 6 of 1984, s. 114)
157I. (1) A person who receives from a company a sum paid in pursuance of a loan made in contravention of section 157H(2) shall be liable to repay that sum to the company forthwith, except where he is not a director of the company or of its holding company and he shows that, at the time the loan was made, he did not know the relevant circumstances.
(2) Subject to subsection (3), a guarantee entered into or any security provided by a company in contravention of section 157H(2) shall be unenforceable against the company.
(3) Subsection (2)—
(a) shall not apply to a guarantee entered into or any security provided in connexion with a loan to a person who is not a director of the company or of its holding company if it is shown that, at the time the guarantee was entered into or the security provided, the person to whom the guarantee was given or the security provided, as the case may be, did not know the relevant circumstances; and
(b) shall not affect an interest in any property which has been passed by the company to any person by way of security provided in connexion with any loan.
(4) Without prejudice to any liability imposed on directors of companies otherwise than by this subsection, a director of a company which has entered into a transaction (whether the making of a loan, the giving of a guarantee or the provision of a security) in contravention of section 157H(2) shall be liable----
Page 60
Page 61
170
CAP. 32]
Companies
[1984 Ed.
Civil
consequences of transactions
contravening
s. 157H.
[cf. 1980 c. 22, s. 52.)
(b) a company which is a member of a group of companies of which a company referred to in paragraph (a) is a member,
references in this section, except in subsection (3)(c) or (d), to a director shall include references to-
(i) the spouse or any child or step-child of such director: (ii) a person acting in his capacity as the trustee (other than as trustee under an employees' share scheme or a pension scheme) of any trust the beneficiaries of which include the director, his spouse or any of his children or step-children or the terms of which confer a power on the trustees that may be exercised for the benefit of the director, his spouse or any of his children or step-children; and (iii) a person acting in his capacity as partner of that director or of his spouse, child or step-child, or of any trustee referred to in paragraph (ii).
(10) References in subsection (9) to the child or step-child of any person shall include a reference to any illegitimate child of that person, but shall not include a reference to any person who has attained the age of 21 years.
( Added, 6 of 1984, s. 114)
1571. (1) A person who receives from a company a sum paid in pursuance of a loan made in contravention of section 157H(2) shall be liable to repay that sum to the company forthwith, except where he is not a director of the company or of its holding company and he shows that, at the time the loan was made, he did not know the relevant circumstances.
(2) Subject to subsection (3), a guarantee entered into or any security provided by a company in contravention of section 157H(2) shall be unenforceable against the company.
(3) Subsection (2)—-
(a) shall not apply to a guarantee entered into or any security provided in connexion with a loan to a person who is not a director of the company or of its holding company if it is shown that, at the time the guarantee was entered into or the security provided, the person to whom the guarantee was given or the security provided, as the case may be, did not know the relevant circumstances; and
(b) shall not affect an interest in any property which has been passed by the company to any person by way of security provided in connexion with any loan.
(4) Without prejudice to any liability imposed on directors of companies otherwise than by this subsection, a director of a company which has entered into a transaction (whether the making of a loan, the giving of a guarantee or the provision of a security) in contravention of section 157H(2) shall be liable----
(
)
Page 60Page 61
No comments yet.
Private notes are available after approval.