Robert Paterson highlights a few key changes to the law which will come into force on 1 October 2007.
Current Law: Section 320 – 322
Companies Act 1985
If a company transfers non-cash assets either to or from a director of the company or its holding company, this will be classed as "substantial property transaction" if the value of the assets either:
- exceeds £2,000 and is worth more than 10% of the company’s net assets; or
These provisions also apply to shadow directors or persons "connected" with the director. In broad terms, spouses, children, stepchildren under 18 and partners are all "connected" within the definition of the Companies legislation, as are companies where the directors (and persons "connected" with them) can exercise more than 20% of votes in general meetings or are interested in at least 20% (in nominal value) of the shares comprised in the equity share capital.
