Relevant Assets

Notwithstanding the general prohibition, a company is permitted to enter into an arrangement (loan, quasi-loan or credit transaction as creditor) with a director of the company, or a person connected with a director of the company provided that, at the time the arrangement is entered into, the aggregate value of the arrangement, together with any other such arrangements already in place, does not exceed 10% of the company’s relevant assets. Please note that this exception does not apply to guarantees or to the giving of security. Moreover, the exception does not apply to loans, quasi-loans or credit transactions with a director of the company’s holding company or with a person connected with a director of the company’s holding company.

For the purposes of this exception, a company’s ‘relevant assets’ are calculated as follows:

• By reference to the net assets of the company as shown in the last (if any) preceding financial statements to have been laid before an Annual General Meeting (AGM) of the company, or
• In the event that no financial statements have been laid before an AGM of the company in respect of a preceding year, the called up share capital of the company