Companies Act 2014 section 219

Interpretation and application (Part 5)

Section 219 defines the key terms and rules used throughout Part 5 of the Act, which deals with restrictions on loans, quasi-loans, credit transactions, and related arrangements involving directors.

• A quasi-loan arises where one party pays a sum or reimburses expenditure on behalf of another, on terms that the borrower will repay the creditor
• A credit transaction covers hire-purchase, conditional sale, leasing of land, hire of goods, or any supply of goods, land, or services where payment is deferred
• The value of a transaction is determined by its type — for loans it is the principal, for quasi-loans the maximum reimbursable amount, for guarantees the amount guaranteed, and for other transactions the fair market price of the goods, land, or services involved
• Where the value of a transaction cannot be expressed as a specific sum, it is automatically deemed to exceed €65,000, and the rules apply regardless of whether the arrangement is governed by Irish law or the law of another country

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