Business Notes: Substantial Property Transactions
- Created by: jutnut
- Created on: 21-08-18 11:01
Substantial Property Transactions (SPT) S.190
Explanation of act:
(a) an arrangement
(b) between the company and
(i) one of its directors
(ii) a person connected with such director or
(iii) one of it's holding company directors or
(iv) a person connected with a holding company director
(c) involving a non-cash asset
(d) that is substantial
Arrangement:
S.190(1) usually a contract between the parties but also looser arrangements i.e. an understanding or an agreement
Parties:
So either with the director and the company directly under s.190 or
A connected person (s.252-256) (see later)
Non Cash Asset:
S.1163 - defines a Non-cash asset: any property or interest in property other than cash = any assets that are not pure cash.
Substantial:
S.191 defines this:
- Value of NCA is £5000 or less = non substatial (s.191(2)) (though remember directors duties s.177)
- Value of NCA is over £5000 but…
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