Part E Guarantees and Security, 37 Vitiating Factors—‘Financial Assistance’
From: The Law and Practice of International Banking (2nd Edition)
Charles Proctor
- Subject(s):
- Regulation of banks — Shares — Security interest — Takeovers
This chapter considers the rules preventing a company from financing an acquisition of its own shares. It discusses the financial assistance prohibition under Section 678(1) of the Companies Act 2006; the scope of the prohibition; the ‘larger purpose’ and other exemptions; and the consequences of breach.
