Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Related arrangements definition

What does Related arrangements mean? In practice, related arrangements are structures that indirectly give a director (or a connected person) a loan, quasi-loan or credit, or transfer an existing transaction to the company, and they attract the same members’ approval requirements as if the company had entered into the transaction directly. Under the Companies Act 2006, Part 10, Chapter 4, those approval rules (for loans, quasi-loans and credit transactions to directors and connected persons: ss 197–201) also apply where the company: (a) is party to an arrangement under which a third party enters into a transaction that would have required members’ approval had the company entered...

Members' approval for directors' and connected persons' credit transactions and related arrangements (Companies Act 2006 ss 201–203): scope, exceptions and procedure

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Practice notes

The Companies Act 2006 (CA 2006)

Under the Companies Act 2006 (CA 2006), credit dealings made for the benefit of Directors, individuals connected to them, and any Related arrangements must be sanctioned by a company’s members. As such dealings involve directors (or their Connected persons), they are viewed as particularly prone to abuse, which is why approval is mandated. How these statutory approval requirements align with the codified general duties of directors is addressed in Practice Note: Directors’ duties—scope, nature, interpretation and application. Among those general duties is a requirement for a director to declare to the other directors any interest, whether direct or indirect, in a proposed transaction or arrangement with the company of which they are a director, and to specify the nature and extent of that interest...

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Web page updated on 21/05/2026

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