Companies Act 2014 section 248

Offence for contravention of section 239

Section 248 establishes that officers of a company commit a criminal offence if the company enters into prohibited loan transactions or similar arrangements with directors or connected persons in breach of section 239.

• Where a company enters into a transaction or arrangement that breaches the prohibition on loans to directors and connected persons under section 239, a criminal offence is committed.
• The offence applies to any officer of the company who is in default — meaning those who authorised, permitted, or participated in the contravention.
• The offence is classified as a category 2 offence under the Companies Act 2014, which carries significant penalties.
• This provision reinforces the seriousness of the restrictions on loans and similar transactions involving directors, by attaching personal criminal liability to the officers responsible.