Defendant was director of a subsidiary of a parent company which was subject to a takeover bid.
Subsidiary company incurred liability to pay accountants’ fees in respect of the transaction (£20,000); actual cost of takeover itself was £2.5 million.
Defendant, as director of company alleged to have given financial assistance, was sued.
Paying of accountants’ fees was financial assistance
This because it smoothed the path to the acquisition of shares
I.e. reduced the transaction cost for purchaser
Thus acted as a financial incentive to buy parent company’s shares
This even though cost of accountant’s fees were dwarfed by cost of takeover!
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