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Section 211: The value of transactions and arrangements

Companies Act 2006 · 2006 c. 46View on legislation.gov.uk

Part 10: A company's directors — Chapter 4: Transactions with directors requiring approval of members

For the purposes of sections 197 to 214 (loans etc)—

the value of a transaction or arrangement is determined as follows, and
the value of any other relevant transaction or arrangement is taken to be the value so determined reduced by any amount by which the liabilities of the person for whom the transaction or arrangement was made have been reduced.

The value of a loan is the amount of its principal.

The value of a quasi-loan is the amount, or maximum amount, that the person to whom the quasi-loan is made is liable to reimburse the creditor.

The value of a credit transaction is the price that it is reasonable to expect could be obtained for the goods, services or land to which the transaction relates if they had been supplied (at the time the transaction is entered into) in the ordinary course of business and on the same terms (apart from price) as they have been supplied, or are to be supplied, under the transaction in question.

The value of a guarantee or security is the amount guaranteed or secured.

The value of an arrangement to which section 203 (related arrangements) applies is the value of the transaction to which the arrangement relates.

If the value of a transaction or arrangement is not capable of being expressed as a specific sum of money—

whether because the amount of any liability arising under the transaction or arrangement is unascertainable, or for any other reason, and
whether or not any liability under the transaction or arrangement has been reduced,

its value is deemed to exceed £50,000.

About this text

This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.