Disclosure of Loans to Directors in Company Accounts - Consultation
Open date: 05 Aug 2009
Closing date: 23 Oct 2009
Response date: 16 Nov 2009
Background to consultation
The Government has decided to consider the issue of disclosures about directors’ loans in company accounts.
The intention of the 2006 Act was to continue to exercise the option available to Member States in article 40(7) of the Bank Accounts Directive 2 to require banks to disclose only aggregate figures for such advances, credits and guarantees. That was the position under the Companies Act 1985. However the effect of section 413(8) of the 2006 Act as enacted would seem to be to require the information for each director, and not an aggregate figure. The Government has received representations from banking stakeholders that the law as currently drafted is unclear and may result in banks making many pages of additional disclosure of such matters as individual credit card transactions for each director.
Purpose of consultation
In considering what amendments might be made to section 413(8), the Government is taking the opportunity to seek views on the wider issue of the disclosure of loans etc. to all directors, not only those made to directors of banking companies and of the holding companies of credit institutions. Depending on the outcome of this consultation, amendments may be made to other aspects of section 413.
Areas for consultation
This consultation concerns section 413 of the Companies Act 2006 (the 2006 Act) which deals with disclosures in the notes to company accounts of advances, credits and guarantees for the benefit of directors.
Response to consultation
Rufus Rottenberg,
Corporate Law and Governance
Department for Business, Innovation and Skills
Bay 560, 1 Victoria Street, London SW1H 0ET.
Tel: 020 7215 0163.
Email: companiesact2006@bis.gsi.gov.uk
Consultation Documents
Download the consultation
Download the government response
