Security & Collateral · glossary
Help a company gives, such as a guarantee, so that someone can buy its shares or its parent's shares. The Companies Act 2006 forbids it only where a public company is involved. Both companies here are private and the loan buys no shares, so it does not arise. Chapter 7
Explained in Chapter 7, The Guarantor, the Group and the Negative Pledge, of Security & Collateral.
A supervisor may ask whether the guarantee is financial assistance. That is help a company gives, such as a guarantee, so that someone can buy its shares or its parent's shares. The Companies Act 2006 forbids it only where a public company is involved (sections 678 to 680). Both companies are private, and the loan buys no shares, so the rule is not in play.Read Chapter 7, The Guarantor, the Group and the Negative Pledge →
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