- financial assistance
The use of a company's own resources to provide financial assistance to enable others to buy its shares is generally prohibited and carries criminal penalties. The restriction is interpreted broadly and extreme care is needed to avoid the prohibited activities. Procedures and exemptions which permit financial assistance in limited conditions are set out in Chapter VI of Part V of the Companies Act 1985. Professional advice should be sought.
Easyform Glossary of Law Terms. — UK law terms.
- financial assistance
Rules, contained in the Companies Act 1985, prohibiting companies from giving financial assistance for the purchase of their shares. Financial assistance is prohibited where it is given by an English company whose shares are being, or have been, acquired (or for any of that company's subsidiaries) for the purpose of that acquisition, unless certain exceptions apply (section 151(1)). The prohibition is extended to cover any financial assistance given to reduce or discharge any liability incurred by the company or any third party for the purpose of the acquisition. A private company may give financial assistance if it follows the whitewash procedure.Related linksfinancial assistance
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
Look at other dictionaries:
financial assistance — UK US noun [U] FINANCE, GOVERNMENT ► official help given to a person or organization in the form of money, loans, reduced taxes, etc.: »Without financial assistance, the state program will be forced to shut down by December. »University… … Financial and business terms
Financial assistance — In law, financial assistance refers to assistance given by a company for the purchase of its own shares or the shares of its holding companies. In many jurisdictions such assistance is prohibited or restricted by law. For example all EU member… … Wikipedia
financial assistance — American state aid for the poor True as far as it goes, but it could as well be a loan, gift, or subsidy to the rich: You re on welfare? Financial assistance, she said haughtily. (Sanders, 1985) … How not to say what you mean: A dictionary of euphemisms
financial assistance — monetary aid … English contemporary dictionary
financial assistance — /faɪˌnænʃəl ə sɪstəns/ noun help in the form of money … Dictionary of banking and finance
Financial Assistance Scheme — (FAS) The scheme set up by the government to provide financial help for members of defined benefit pension schemes (defined benefit scheme) who have lost out because their scheme was underfunded when it wound up. To qualify for help, the scheme s … Law dictionary
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Financial assistance following the September 11 attacks — Charities and relief agencies raised over $657 million in the three weeks following the September 11, 2001 attacks, the vast bulk going to immediate survivors and victims families. While this is a rather large sum, it is small compared to the… … Wikipedia
EU financial assistance — Europos Sąjungos finansinė parama statusas Aprobuotas sritis Europos Sąjungos finansų politika apibrėžtis Lietuvai skiriamos Europos Sąjungos biudžeto lėšos, išskyrus Europos Sąjungos fondų lėšas. atitikmenys: angl. EU financial assistance… … Lithuanian dictionary (lietuvių žodynas)
international financial assistance — tarptautinė finansinė pagalba statusas Aprobuotas sritis branduolinė sauga apibrėžtis Esminė ir ilgalaikė finansinė Europos Sąjungos, G7 valstybių grupės, kitų šalių ir tarptautinių finansinių institucijų parama. nuoroda http://www3.lrs.lt/cgi… … Lithuanian dictionary (lietuvių žodynas)