Share on LinkedInShare on LinkedIn

ARTICLE · 15 NOVEMBER 1998

Financial Assistance and Year 2000 - A Re-Evaluation

United KingdomMedia, Telecoms, IT, Entertainment
With the millennium less than 365 days away banks and equity investors funding acquisitions of private companies need to consider what impact Year 2000 issues will have on the ability of target companies and their directors to comply with the financial assistance "whitewash" procedure set out in sections 155-158 of the Companies Act 1985.

The Procedure

The financial assistance whitewash procedure requires that:

  • the financial assistance being given must not reduce net assets (or that a reduction can be funded from distributable reserves);
  • the directors of the target company must provide a statutory declaration that the company can pay its debts as they fall due over the following 12 months; and

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

See more popular content from