Companies Act 2014 section 203

Declaration to be made in the case of financial assistance for acquisition of shares or transaction with directors

Section 203 sets out what must be included in a directors' declaration when a company uses the Summary Approval Procedure to provide financial assistance for the acquisition of shares or to enter into certain transactions with directors that would otherwise be prohibited.

• The declaration must describe the circumstances, nature, beneficiaries, purpose and expected benefit of the transaction or arrangement.
• Directors must confirm, after a full inquiry into the company's affairs, that the company will be able to pay its debts and liabilities in full as they fall due during the 12 months following the transaction.
• A copy of the declaration must be filed with the Registrar within 21 days of the restricted activity commencing.
• If the filing deadline is missed, an interested party may apply to the court, which can declare the activity valid if it considers it just and equitable to do so.