FINANCE : A critique of S.57 on ‘financial assistance’ by companies—10
What you need to know:
Section 57(1) of the CA 2002 prohibits a company from directly or indirectly giving any financial assistance for the purpose of or in connection with a purchase or subscription made or to be made by any person of or for any shares in the company, or in its holding company. The term ‘financial assistance’ is not defined in the section; nevertheless, the section refers to “by means of a loan, guarantee, the provision of security or otherwise.”
