Continuing our series on legal and other concepts aimed at those working in tax Malcolm Hurley Tite & Lewis discusses financial assistance
The Companies Act 1985 (CA 85) ss 151 to 158 set out the infamous provisions which prohibit a company from giving financial assistance directly or indirectly for the acquisition of its own shares or of shares in its holding company.
Any analysis of the financial assistance rules should begin with a close reading of the wording of s 151 (see Figure 1 overleaf).
Figure 1: Meaning
● section 151(1) —
'… where a person is acquiring or is proposing to...
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Continuing our series on legal and other concepts aimed at those working in tax Malcolm Hurley Tite & Lewis discusses financial assistance
The Companies Act 1985 (CA 85) ss 151 to 158 set out the infamous provisions which prohibit a company from giving financial assistance directly or indirectly for the acquisition of its own shares or of shares in its holding company.
Any analysis of the financial assistance rules should begin with a close reading of the wording of s 151 (see Figure 1 overleaf).
Figure 1: Meaning
● section 151(1) —
'… where a person is acquiring or is proposing to...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
