How company law change could hit home improvers and motorists

Stuart McMaster, a corporate partner at lawyers Mishcon de Reya, commented: “The law on loans to directors became significantly more permissive in October 2007. Prior to this point there was an absolute prohibition on a company lending more than £5,000 to a director. From October 2007, it became possible for a company to lend any amount to its directors, provided that shareholder approval is obtained and the loan is considered by the board to be in the best interests of the company.”

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