Disclosures required for the current and preceding year, includes material transactions between the company or its subsidiaries and a director of a company in which the director is interested in other than the exceptions that follow (directors other than the directors who has the interest should assess whether it is material) – S.309 Companies Act 2014.
Disclosure of the following is required in the financial statements:
(a) the particulars of the principal terms of the arrangement or transaction,
(b) the name of the director or other person with the material interest
(c) the nature of the interest.
The following are exceptions to disclosure:
- Paragraph 67(3) of Schedule 3 excludes transactions entered into between two or more members of a group if any subsidiary undertaking which is party to the transaction is wholly owned by such a member. In line with FRS 102 Section 33 exemption.
- An arrangement or transaction which was not entered into during the financial year concerned and did not subsist at any time during the year;
- Transaction or arrangement between one company and another in which a director of the first company (or subsidiary or holding company) is interested only by virtue of common directorships;