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)|
|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.