Companies Act 2014 section 244

Directors' expenses

Section 244 provides an exception to the general prohibition on loans to directors, allowing companies to fund vouched business expenses incurred by directors in the course of their duties.

• Companies may provide directors with funds to meet vouched expenditure incurred or to be incurred for company purposes or to enable directors to properly perform their duties.
• Companies may also enable directors to avoid incurring such qualifying expenditure in the first place.
• Any liability arising from these permitted transactions must be discharged by the director within 6 months of the date on which it was incurred.
• Failure to repay within the 6-month period is a category 4 offence.