Section 80 — Companies Act 1993: Financial assistance not exceeding 5 percent of shareholders' funds

80 Financial assistance not exceeding 5 percent of shareholders' funds (1) Financial assistance may be given under section 76(1)(c) of this Act, only if— (a) The amount of the financial assistance, together with any other financial assistance given by the company pursuant to this paragraph, repayment of which remains outstanding, would not exceed 5 percent of the aggregate of amounts received by the company in respect of the issue of shares and reserves as disclosed in the most recent financial statements of the company that comply with section 10 of the Financial Reporting Act 1993 , and the company receives fair value in connection with the assistance; and (b) Within 10 working days of providing the financial assistance, the company sends to each shareholder a notice containing the following particulars: (i) The class and number of shares in respect of which the financial assistance has been provided: (ii) The consideration paid or payable for the shares in respect of which the financial assistance has been provided: (iii) The identity of the person receiving the financial assistance and, if that person is not the beneficial owner of the shares in respect of which the financial assistance has been provided, the identity of that beneficial owner: (iv) The nature and, if quantifiable, the amount of the financial assistance. (2) If a company fails to comply with subsection (1)(b) of this section,— (a) The company commits an offence and is liable on conviction to the penalty set out in section 373(1) of this Act; and (b) Every director of the company commits an offence and is liable on conviction to the penalty set out in section 374(1) of this Act.