Question to the Department for Business, Innovation, Science and Trade:

To ask the Secretary of State for Business, Innovation, Science and Trade, where purchaser funds are transferred between connected companies or used in connection with other developments within the same corporate group, what legal or regulatory requirements govern those transactions.

The Companies Act 2006 sets out legal requirements in respect of related-party transactions. These include the rights and duties of the company directors and shadow directors within Part 10, disclosure obligations in Part 15 and financial assistance rules in Part 17.

Where a company enters insolvency, the insolvency framework provides mechanisms to investigate the company’s affairs and transactions before insolvency, including transactions involving connected parties. These protections sit alongside company reporting and disclosure requirements.