But I can't recall, assuming I ever knew, why this clause appears as standard in memorandums.
Is it as a provision to allow directors to make a payment which would otherwise be seen as a loan? Or because an indemnity payment would be a payment by directors to themselves and as such should be explicitly permitted.
I'm aware that the alw has changed CA 2004 & there might be a need to update the paperwork.
Colin
Colin L