# Companies Act 1985, Paragraph 20

Extent: E+W+S+N.I.

Neither paragraph 15(c) nor paragraph 16(c) applies in relation to any transaction or arrangement if—
(a) each party to the transaction or arrangement which is a member of the same group of companies (meaning a holding company and its subsidiaries) as the company entered into the transaction or arrangement in the ordinary course of business, and
(b) the terms of the transaction or arrangement are not less favourable to any such party than it would be reasonable to expect if the interest mentioned in that sub-paragraph had not been an interest of a person who was a director of the company or of its holding company.

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Source: https://www.legislation.gov.uk/ukpga/1985/6/schedule/6/paragraph/20 (the official version)
Page: https://openlegislation.uk/companies-act-1985/schedule-6/paragraph-20
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.