Companies Act 2014 section 307

Obligation to disclose information about directors' benefits: loans, quasi-loans, credit transactions and guarantees

Section 307 requires companies to disclose detailed information in the notes to their financial statements about loans, quasi-loans, credit transactions, guarantees, and related arrangements made with or for their directors, directors of holding undertakings, and persons connected with those directors.

• Both entity and group financial statements must disclose, for the current and preceding financial year, full particulars of loans, quasi-loans, credit transactions, guarantees, and security provided to or for directors and connected persons, including any agreements to enter into such arrangements.
• Detailed information must be given separately for each director or connected person, including the person's name, the value of arrangements at the start and end of the year, advances made, repayments received, amounts waived, allowances for non-repayment, interest rates, and other main conditions.
• Aggregate totals must also be disclosed in the notes, and the total value of all loan-type arrangements must be expressed as a percentage of the company's net assets at the beginning and end of the financial year.
• Where the aggregate of amounts outstanding under loan-type arrangements and maximum guarantee liabilities exceeds 10 per cent of the company's net assets at any time during the year, the aggregate amount and its percentage of net assets must be separately stated.