Transactions with directors in respect of non-cash assets

A company or its holding company is not permitted to enter into a transaction with a director under which a non-cash asset of a ‘requisite value’ (in this instance a property or interest in a property) is transferred unless it is first approved by a resolution of the company in general meeting.

 

In this instance a non-cash asset meets the threshold to be of requisite value if:

 

Requisite Value if…
Value of non-cash asset is greater than…. 10% of company’s relevant assets (but must be greater than €5k)
or
Where not greater than 10% of the company’s relevant assets, the value of the non-cash asset is greater than…. €65k

 

This prohibition does not apply if the non-cash asset is to be acquired by one group company from another or if the transaction is with a member of the company (who is also a director) in their capacity as a member and not a director.