Companies Act 2014 section 827

Disapplication of certain provisions to company having a restricted person

Section 827 restricts the use of the Summary Approval Procedure and disapplies certain director-related transaction provisions where a company has a restricted person.

• The Summary Approval Procedure cannot be used by a company that has a restricted person associated with it.
• An exception applies for members' voluntary winding up, where the Summary Approval Procedure remains available despite the presence of a restricted person.
• The rules on arrangements of certain value (section 240) and business transactions (section 245) do not apply to a company that has a restricted person.
• The disapplication of sections 240 and 245 is without prejudice to section 247, meaning the personal liability provisions for company debts still stand independently.