Companies Act 2014 section 243

Intra-group transactions

Section 243 provides an exemption from the general prohibition on loans and similar transactions to directors and connected persons, allowing such transactions to take place freely between companies within the same corporate group.

• Companies may make loans or quasi-loans to their holding company, subsidiaries, or fellow subsidiaries without breaching the general prohibition in Section 239.
• Companies may provide guarantees or security for loans or quasi-loans made by any person to other members of the same corporate group.
• Companies may enter into credit transactions as creditor for other group members, such as supplying goods or services on deferred payment terms.
• Companies may guarantee or provide security for credit transactions entered into by any other person for the benefit of another group member.

---