This note considers the rules under the Companies Act 1985, pre-1 October 2009, that prohibited a public company from giving financial assistance for the purpose of the acquisition of its shares or those of a parent company, and a private company from giving financial assistance for the purpose of the acquisition of shares of a public parent company.

For details of the law under the Companies Act 2006 from 1 October 2009, see Practice note, Financial assistance: 1 October 2009.