Section 47: Substantial property transactions involving directors, etc.

(1) Subject to the exceptions specified under section 48 of this Act, a public enterprise shall not enter into an arrangement by which -
(a) a director of the public enterprise or a person connected with the director, acquires or is to acquire one or more non-cash assets of the requisite value from the public enterprise; or
(b) the public enterprise acquires or is to acquire one or more non-cash assets of the requisite value from a director or a person connected with the director, unless the arrangement is first approved by the Commission.
(2) For the purpose of subsection (1) of this section
(a) a non-cash asset is of the requisite value if, at the time the arrangement in question is entered into, its value is not less than N20,000 or more than N 100,000 or twenty per cent of the value of the net assets of the public enterprise, whichever is higher; and
(b) the value of the net assets of the public enterprise shall be determined by reference to the accounts prepared and delivered under this Act for the immediately preceding year in respect of which those accounts were so delivered to the Commission.