In this Chapter "financial assistance" means—
financial assistance given by way of gift,
financial assistance given—
by way of guarantee, security or indemnity (other than an indemnity in respect of the indemnifier's own neglect or default), or
by way of release or waiver,
financial assistance given—
by way of a loan or any other agreement under which any of the obligations of the person giving the assistance are to be fulfilled at a time when in accordance with the agreement any obligation of another party to the agreement remains unfulfilled, or
by way of the novation of, or the assignment (in Scotland, assignation) of rights arising under, a loan or such other agreement, or
any other financial assistance given by a company where—
the net assets of the company are reduced to a material extent by the giving of the assistance, or
the company has no net assets.
"Net assets" here means the aggregate amount of the company's assets less the aggregate amount of its liabilities.
For this purpose a company's liabilities include—
where the company draws up Companies Act individual accounts, any provision of a kind specified for the purposes of this subsection by regulations under section 396, and
where the company draws up IAS individual accounts, any provision made in those accounts.