203. Payments For Loss Of Office

(1) In this Chapter a “payment for loss of office” means a payment made to a director or past director of a company–
(a) by way of compensation for loss of office as director of the company,
(b) by way of compensation for loss, while director of the company or in connection with his ceasing to be a director of it, of–
(i) any other office or employment in connection with the management of the affairs of the company, or
(ii) any office (as director or otherwise) or employment in connection with the management of the affairs of any subsidiary undertaking of the company,
(c) as consideration for or in connection with his retirement from his office as director of the company, or
(d) as consideration for or in connection with his retirement, while director of the company or in connection with his ceasing to be a director of it, from–
(i) any other office or employment in connection with the management of the affairs of the company, or
(ii) any office (as director or otherwise) or employment in connection with the management of the affairs of any subsidiary undertaking of the company.
(2) The references to compensation and consideration include benefits otherwise than in cash and references in this Chapter to payment have a corresponding meaning.
(3) For the purposes of sections 205 (payment by company) to 209 (exception for small payments)–
(a) payment to a person connected with a director, or
(b) payment to any person at the direction of, or for the benefit of, a director or a person connected with him,
is treated as payment to the director.
(4) References in those sections to payment by a person include payment by another person at the direction of, or on behalf of, the person referred to.