HL Deb 27 March 1980 vol 407 cc1078-80

205 After Clause 45, insert the following new clause: Transactions, etc., excluded from ss. (Substantial contracts, etc., with directors and others to be disclosed in accounts) and (Further provisions relating to recognised banks)).

.—(1) Subsections (1) and (2) of section (Substantial contracts, etc., with directors and others to be disclosed in accounts) above do not apply, in relation to the accounts prepared by a company in respect of a relevant period, to transactions of the kind mentioned in subsection (2) below which are made by the company or by a subsidiary of the company for a person who at any time during the relevant period was a director of the company or of its holding company or was connected with such a director, if the aggregate of the values of each transaction, arrangement or agreement so made for that director or any person connected with him, less the amount (if any) by which the liabilities of the person for whom the transaction or arrangement was made has been reduced, did not at any time during the relevant period exceed £5,000.

(2) The said transactions are—

  1. (a) credit transactions;
  2. (b) guarantees provided or securities entered into in connection with credit transactions;
  3. (c) arrangements within subsection (3) or (4) of section (Prohibition of loans, etc., to directors and connected persons) above relating to credit transactions;
  4. (d) agreements to enter into credit transactions.

(3) Subsections (1)(c) and (2)(c) of section (Substantial contracts, etc., with directors and others to be disclosed in accounts) above do not apply, in relation to the accounts prepared by a company in respect of a relevant period, to any transaction or arrangement made by the company or by a subsidiary of the company for a person who at any time during the relevant period was a director of the company or of its holding company or was connected with such a director, if the aggregate of the values of each transaction or arrangement within the said subsection (1)(c.) or (2)(c), as the case may be, so made for that director or any person connected with him, less the amount (if any) by which the liabilities of the person for whom the transaction or arrangement was made has been reduced, did not at any time during the relevant period exceed £1,000 or, if more, did not exceed £5,000 or one per cent. of the value of the net assets of the company which is preparing the accounts in question as at the end of the relevant period for those accounts, whichever is the less.

(4) Section (Further provisions relating to recognised banks) above does not apply in relation to transactions or arrangements made or subsisting during a relevant period by a company or by a subsidiary of a company for a person who at any time during that period was a director of the company or of its holding company or was connected with such a director, or to any agreement made or subsisting during that period to enter into such a transaction or arrangement, if the aggregate of the values of each transaction or arrangement made for that person, and of each agreement for such a transaction or arrangement, less the amount (if any) by which the value of those transactions, arrangements and agreements has been reduced, did not exceed £1,000 at any time during the relevant period.

7.40 p.m.

Lord LYELL

My Lords, I beg to move that this House doth agree with the Commons in their Amendment No. 205. I have already spoken to this amendment. My Lords, I beg to move.

Moved, That the House doth agree with the Commons in the said amendment.—(Lord Lyell.)

Lord SELSDON had given notice of his intention to move Amendment No. 205A, as an amendment to Commons Amendment No. 205:

205A In subsection (4), line 12, leave out ("£1,000") and insert ("£2,000").

The noble Lord said: My Lords, in view of the comments of my noble friend on Amendment No. 197A, I propose not to move this amendment.

On Question, Motion agreed to.