195. Exception for expenditure in connection with regulatory action or investigation

Approval is not required under section 186 (loans to directors), 187 (quasi-loans to directors), 189 (loans or quasi-loans to persons connected with directors) or 190 (credit transactions) for anything done by a company—

(a) to provide a director of the company or of its holding company with funds to meet expenditure incurred or to be incurred by him in defending himself—
(i) in an investigation by a regulatory authority, or
(ii) against action proposed to be taken by a regulatory authority,
in connection with any alleged negligence, default, breach of duty or breach of trust by him in relation to the company or an associated company, or
(b) to enable any such director to avoid incurring such expenditure.