ACCA LW ^Eng Syllabus F. Management, Administration And The Regulation Of Companies - Directors' Specific Duties - Notes ^{5 / 5}

Substantial Property Transactions

If a director wants property of the company - she needs approval within the following limits:

(a) the lower of – £100,000 or 10% of net assets
(b) there is a de minimis value of £5,000

Loans and quasi loans

Private Companies
Loans to directors fine - subject to member approval.

Public Companies
Also need member approval for loans and quasi loans to directors.

In respect of all types of companies the following loans may be made without member approval:

1. loans up to £10,000

2. loans up to £50,000 (If assists directors in their duties)

3. loans and quasi loans made by a money lending business in the ordinary course of business

Service Contracts

All directors' service contracts copies must be kept - for at least one year after they have expired.

Consequences of a breach of duty

1. Fined – failure to comply can be a criminal offence

2. Removed from office – for breach of their service contract

3. Indemnify the company– for any losses suffered as a result of breach of duty