Directors, disclosure of transactions with
The 1948 UK Companies Act required companies to give details of certain loans to directors in the annual accounts and the 1967 Act added the duty to disclose material interests in contracts. Both these requirements have been incorporated into the much wider duties of disclosure first contained in the 1980 Companies Act and in the Companies Act 1985.
The published accounts must give details by way of a note to the accounts not only of loans to directors but also of a wide range of transactions in which any director. or in certain cases any officer of the company, has a material interest, being trans¬ actions between the company and the director or by the company on behalf of or for the benefit of the director. The disclosure requirements are very broad and exempted transactions few, tending to be restricted to those involving very small amounts. Special rules apply to banks.
Reference: The Penguin Business Dictionary, 3rd edt.