Conflicting concerns have also been expressed, namely that such financial assistance artificially inflates a share's price above its market level.
Although the authorities are unclear, it seems that financial assistance may also have been a crime under the English common law prior to its codification by statute.
[6] If that is correct, then laws against financial assistance may be much more prevalent than is normally assumed, and would also apply in many of the English speaking Commonwealth countries.
Laws against financial assistance are sometimes controversial because of the difficulties they can cause in the context of a leveraged buyout, and some jurisdictions which have enacted them have later repealed them.
[7] Some jurisdictions provide for so-called "whitewash" procedures,[8] whereby the shareholders can authorise transactions that would otherwise be void for financial assistance.