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Paragraph 21 Directors' loans and transactions

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

This paragraph applies, subject to subparagraph (5) below, in relation to—

(a)

loans from and other transactions and arrangements with the society described in section 65 of the Act (which restricts loans to and other transactions and arrangements with directors and persons connected with them), other than those to which section 65(5) and (6) of the Act applies, and

(b)

in the case of a group accounts society, loans from and other transactions and arrangements with a relevant subsidiary of the society to which paragraph (a) above would apply were the society rather than the relevant subsidiary a party to them.

(2)

The notes to the annual accounts shall contain a statement, in relation to such loans, transactions, and arrangements showing as follows—

(a)

the aggregate amounts outstanding under them at the end of the financial year, and

(b)

the numbers of persons for whom such loans, transactions and arrangements were made.

(3)

The notes to the annual accounts shall, in relation to any loan or other transaction or arrangement subsisting during or at the end of the financial year, make the following disclosures:—

(a)

where a copy of it or a memorandum of its terms is included in the register maintained under section 68 of the Act (which requires the maintenance of such a register), the existence of the register and the availability of requisite particulars from it for inspection shall be disclosed;

(b)

where it comes within subparagraph (1)(b) above, its particulars shall be disclosed unless it was one which would, had the relevant subsidiaries of the society formed part of the society, have been excepted from the obligations imposed by section 68 of the Act.

(4)

Regulation 5(2)(b) above shall not apply to this paragraph.

(5)

So far as this paragraph applies to loans to and other transactions and arrangements with persons who are not directors of the society, it applies to those to which the society (or, in the case of any relevant subsidiary incorporated in the United Kingdom, the relevant subsidiary) has notice of the application of this paragraph, and for this purpose notice of the connection of any such person with a director of the society shall be treated as notice of the application of this paragraph.