The Impact of the Companies Act 2006 on Loan Documentation

The Companies Act 2006 codifies directors’ duties and brings out the concept of enlightened shareholder value. This means there is likely to be a greater focus on the content of board minutes which are normally required as a condition precedent. Generally speaking, in the context of a plain vanilla corporate loan, it will be inadvisable and unnecessary to extend board minutes to itemise consideration of the enlightened shareholder value factors.