Financial assistance

Resource type: Practice note

Status: Maintained

Jurisdiction: United Kingdom

This note considers the rules under the Companies Act 2006, from 1 October 2009, that prohibit a public company from giving financial assistance for the purpose of the acquisition of its shares or those of a parent company, and a private company from giving financial assistance for the purpose of the acquisition of shares of a public parent company.

For details of the pre-1 October 2009 position under the Companies Act 1985, see Practice note, Financial assistance: pre-1 October 2009.

Bruce Hanton, Ashurst and PLC Corporate

Register for free access

To access this resource and thousands more, register for a free, no-obligation trial of Practical Law. Register using the button below, telephone +44 (0)20 7202 1220 or e-mail info@practicallaw.com.

A free trial will give you:

✔	Unlimited access to Practical Law online know-how
✔	Thousands of market standard documents and clauses
✔	Daily alerts and weekly update e-mails on key legal developments in your practice area
	Register

Log in

To access this resource, log in below or register for free access.

Contact us

Our customer services team are available every working day 8.30am to 7pm (GMT).

Actions

Resource information

Show resource details Hide resource details

Resource ID: 8-382-5504
Products: PLC UK Corporate, PLC UK Employment, PLC UK Finance, PLC UK Law Department, PLC UK Property, PLC UK Public Sector, PLC US Finance, PLC US Law Department
This resource is maintained, meaning that we monitor developments on a regular basis and update it as soon as possible.

Ask a question

Related content

Related content

Topics

Acquisition FinanceAcquisition Finance (http://plc.practicallaw.com/7-201-4068)
Corporate Support: Land and BuildingsCorporate Support: Land and Buildings (http://plc.practicallaw.com/2-103-1311)
GuaranteesGuarantees (http://plc.practicallaw.com/3-380-7404)
Lending: GeneralLending: General (http://plc.practicallaw.com/1-103-2033)
Maintenance of Capital and Shareholder RightsMaintenance of Capital and Shareholder Rights (http://plc.practicallaw.com/6-103-1154)
Miscellaneous: Company LawMiscellaneous: Company Law (http://plc.practicallaw.com/1-103-2052)
Miscellaneous: FinanceMiscellaneous: Finance (http://plc.practicallaw.com/3-103-1103)
Mortgages and Security: Land and BuildingsMortgages and Security: Land and Buildings (http://plc.practicallaw.com/1-103-1321)
Share Acquisitions: PrivateShare Acquisitions: Private (http://plc.practicallaw.com/1-103-1081)

Practice note: overview

Share capital: overview Share capital: overview (http://crossborder.practicallaw.com/topic4-422-3165)

Practice notes

Companies Act 2006: The Companies Act 2006 (Commencement No. 5, Transitional Provisions and Savings) Order 2007 Companies Act 2006: The Companies Act 2006 (Commencement No. 5, Transitional Provisions and Savings) Order 2007 (http://crossborder.practicallaw.com/topic4-379-9106)
Financial assistance before 1 October 2008 Financial assistance before 1 October 2008 (http://crossborder.practicallaw.com/topic5-107-3757)
Financial assistance in buyouts Financial assistance in buyouts (http://crossborder.practicallaw.com/topic3-107-4041)
Financial assistance: Companies Act 2006 Financial assistance: Companies Act 2006 (http://crossborder.practicallaw.com/topic2-202-4475)
Financial assistance: pre-1 October 2009 Financial assistance: pre-1 October 2009 (http://crossborder.practicallaw.com/topic1-386-5937)

Glossary

Financial assistance Financial assistance (http://crossborder.practicallaw.com/topic6-107-5751)

Article

Financial assistance: a European perspective Financial assistance: a European perspective (http://crossborder.practicallaw.com/topic6-382-7655)

Legal update: archive

Financial assistance: break fee (High Court) Financial assistance: break fee (High Court) (http://crossborder.practicallaw.com/topic0-518-7870)
Financial assistance: life after the whitewash Financial assistance: life after the whitewash (http://crossborder.practicallaw.com/topic6-383-4279)

External resource

The implications for leveraged transactions of the repeal of the statutory prohibition of financial assistance by private companies: Joint memorandum of the Company Law and Financial Law committees of the City of London Law Society The implications for leveraged transactions of the repeal of the statutory prohibition of financial assistance by private companies: Joint memorandum of the Company Law and Financial Law committees of the City of London Law Society (http://crossborder.practicallaw.com/topic6-383-4934)

{ "siteName" : "PLC", "objType" : "PLC_Doc_C", "objID" : "1247243596653", "objName" : "Financial assistance", "userID" : "2", "objUrl" : "http://crossborder.practicallaw.com/cs/Satellite/8-382-5504?source=relatedcontent", "pageType" : "", "contentAccessed" : "false", "analyticsPermCookie" : "2bd45024:13ebb645455:7815", "analyticsSessionCookie" : "2bd45024:13ebb645455:7816", "statisticSensorPath" : "http://analytics.practicallaw.com/sensor/statistic" }