Fact pattern

Sue Charles has recently become a director of Morrat Limited (“Morrat”). Since becoming a director, she has been devoting increasingly more time to the business of Morrat, with the consequence that she is selling a number of other business interests. One of Sue’s other businesses was run from premises owned by Sue’s husband, Martin Charles. Morrat is interested in purchasing these premises from Martin Charles to provide an additional warehousing facility.

Section 190 CA 2006 controls arrangements where directors or persons connected with a director either acquire from or sell to the company a substantial non-cash asset. Connected persons include (amongst others) a director’s spouse, in this case, Martin.