Section 207(3)

Approval is not required under section 201 for a company to enter into a credit transaction, or to give a guarantee or provide security in connection with a credit transaction, if— the transaction is entered into by the company in the ordinary course of the company's business, and the value of the transaction is not greater, and the terms on which it is entered into are not more favourable, than it is reasonable to expect the company would have offered to, or in respect of, a person of the same financial standing but unconnected with the company.

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Source: legislation.gov.uk · retrieved 2026-09-04