| (1) | This section explains what is meant in section 190 (requirement of approval for substantial property transactions) by a “substantial” non–cash asset. |
| (2) | An asset is a substantial asset in relation to a company if its value— |
| (a) | exceeds 10% of the company's asset value and is more than £5,000, or |
| (b) | exceeds £100,000. |
| (3) | For this purpose a company's “asset value” at any time is— |
| (a) | the value of the company's net assets determined by reference to its most recent statutory accounts, or |
| (b) | if no statutory accounts have been prepared, the amount of the company's called–up share capital. |
| (4) | A company's “statutory accounts” means its annual accounts prepared in accordance with Part 15, and its “most recent” statutory accounts means those in relation to which the time for sending them out to members (see section 424) is most recent. |
| (5) | Whether an asset is a substantial asset shall be determined as at the time the arrangement is entered into. |
| NOTES |
| Derivation |
| This section derived from the Companies Act 1985, s 320(2). |
| Initial Commencement |
| To be appointed |
| To be appointed: see s 1300(2). |
| Appointment |
| Appointment: 1 October 2007: see SI 2007/2194, art 2(1)(d); for transitional provisions and savings see art 9, Sch 3, para 7 thereto. |
| See Further |
| See further, in relation to the disapplication of this section, in respect of certain specified persons while Northern Rock is wholly owned by the Treasury: the Northern Rock plc Transfer Order 2008, SI 2008/432, art 17, Schedule, para 2(h). |
| See further, in relation to the disapplication of this section, in respect of certain specified persons while Bradford & Bingley is wholly owned by the Treasury: the Bradford & Bingley plc Transfer of Securities and Property etc Order 2008, SI 2008/2546, art 13(1), Schedule, para 2(h). |
| See further, in relation to the disapplication of this section, in respect of certain specified persons while Deposits Management (Heritable) is wholly owned by the Treasury: the Heritable Bank plc Transfer of Certain Rights and Liabilities Order 2008, SI 2008/2644, art 26, Sch 2, para 2(h). |
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