Transactions with directors (Companies Act 2014)
The requirement to disclose directors’ transactions in company financial statements continues under Companies Act 2014. However the act amends the thresholds of certain transactions below which certain disclosures will be exempted from including in the financial statements:
• the obligation to disclose benefits received by a director in relation to loans, quasi-loans, credit transactions and guarantees does not apply in relation to a director or connected person where the aggregate value of the agreements / arrangements did not exceed €7,500 during the financial year (this amount was previously €3,175); and
• arrangements and transactions in which the directors have a material interest do not need to be disclosed where, during the relevant financial year, the value of such transaction or arrangement did not exceed in aggregate €5,000 or (if more) did not exceed €15,000 or one per cent of the value of the net assets of the company preparing the financial statements (whichever is less).
This amendment will be a welcome respite for directors who are now required to disclose their salaries within company financial statement under Companies Act 2014.