When assessing the 10% rule with regard to loans/quasi loans/credit transactions/guarantees does each director and their connected persons need to be considered separately in determining whether the 10% rule has been breached?

Yes the 10% rule is for each director and their connected persons. So if two unconnected directors had loans that if net off would not be reportable (as below 10% of the relevant net assets) but in isolation the debit balance is reportable then the auditor must report and the director would be in breach.

If two directors were husband and wife and when combined the husband and wife’s loan was less than 10% of the relevant net assets but the husbands taken together was 10% or greater then this loan would not be a breach of S.239 and would not be reportable by the auditor.