Business Notes: Substantial Property Transactions

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  • 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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