COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 54 Prohibition of provision of financial assistance by company for purchase of or subscription for its own or its holding company's shares.

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COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 54

Prohibition of provision of financial assistance by company for purchase of or subscription for its own or its holding company's shares.

54.(1) Subject to sub-section (2), it shall not be lawful for a company to
give, whether directly or indirectly, and whether by means of a loan,
guarantee, the provision of security or otherwise, 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, where
the company is a subsidiary company, in its holding company.

(2) Nothing in sub-section (1) shall be taken to prohibit

(a)where the lending of money is part of the ordinary business of a company,
the lending of money by the company in the ordinary course of its business;

(b)the provision by a company, in accordance with any scheme for the time
being in force, of money for the purchase of, or subscription for, fully-paid
shares in the company or its holding company, being a purchase or subscription
by trustees of or for shares to be held by or for the benefit of employees of
the company, including any director holding a salaried employment or office in
the company;

(c)the making by a company of loans to persons, other than directors, bona
fide in the employment of the company with a view to enabling those persons to
purchase or subscribe for fully-paid shares in the company or its
holding company to be held by themselves by way of beneficial ownership.

(3) If a company acts in contravention of this section, the company and every
officer of the company who is in default shall be liable to a fine not
exceeding one hundred pounds.

Construction of references to offering shares or debentures to the public.

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Northern Irish Legislation

COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 54