# Companies Act 2006, Section 196: Property transactions: effect of subsequent affirmation


Where a transaction or arrangement is entered into by a company in contravention of section 190 (requirement of members' approval) but, within a reasonable period, it is affirmed—
(a) in the case of a contravention of subsection (1) of that section, by resolution of the members of the company, and
(b) in the case of a contravention of subsection (2) of that section, by resolution of the members of the holding company,
the transaction or arrangement may no longer be avoided under section 195.

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Source: https://www.legislation.gov.uk/ukpga/2006/46/section/196 (the official version)
Page: https://openlegislation.uk/companies-act-2006/section-196
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.