What constitutes a substantial property transaction under company law?

A substantial property transaction under company law is defined by specific thresholds that create a regulatory framework for company governance and shareholder protection. The definition in option B addresses both a monetary valuation of the transaction and a percentage value relative to the company's net assets, which are critical for assessing the materiality of the transaction in the context of the company's overall financial health.

When a transaction exceeds £100,000 or is valued at more than £5,000 and represents over 10% of the company's net assets, it indicates a significant impact on the company’s balance sheet. This ensures that shareholders are informed about transactions that could potentially affect their interests and the company’s financial position.

Understanding these thresholds is vital for compliance with company law, as it mandates that companies disclose such transactions to directors and shareholders. This is designed to prevent management from entering into potentially harmful or unapproved transactions that could jeopardize the company’s assets.

Other options suggest different thresholds that do not align with the legally established criteria for substantial property transactions, making them inadequate or incorrect representations of what constitutes a substantial transaction under company law.