Loans to directors, Business Law and Ethics

Loans to Directors:

Section 191(1) renders unlawful any loan made by a company to a director of the company or its holding company. It is also unlawful for the company to guarantee a loan given to its director by any other person. These restrictions do not apply to-

(a)   a private company; or

(b)   a subsidiary whose director is its holding company; or

(c)    payments made to a director to meet expenses incurred or to be incurred by him for purposes of the company, or may to enable him properly to achieve his duties as an officer of the company; or

(d)   a loan given by a money lending company, such as a bank, in the ordinary course of its business.

Posted Date: 1/12/2013 4:48:29 AM | Location : United States







Related Discussions:- Loans to directors, Assignment Help, Ask Question on Loans to directors, Get Answer, Expert's Help, Loans to directors Discussions

Write discussion on Loans to directors
Your posts are moderated
Related Questions
Government optimal long run policy - Nash equilibrium The government's optimal long run policy is associated with policy coordination at point C. However, as in the static mod

Explain the principle of absolute immunity The absolute immunity principle gradually eroded and restrictive immunity approach was followed. However, many developing countries r

Duties or Obligations of Hirer However these are not provided in the Act although are usually found in such the agreement itself Like: a) Take delivery: whether upon ente

Reconstruction Under S.280: The essential features of this type of reconstruction have been described at 8.2.1(b).  It is subject to several disadvantages and is little used.

Part A Companies can raise finance by borrowing money and securing the debt by way of fixed or floating charge. Using case law in your answer explain what is the distinction b

Exceptions: The rule in Turquand's case will not apply if: i.The person suing the company is in fact an insider, such as a director of the company: Howard v Patent Ivory

Question 1: a. Distinguish between Economic Development and economic growth. b. "Despite all their diversity, less developed countries are linked by a range of common problems"

The International Court of Justice The International Court of Justice (ICJ) issued a legal opinion on the legality of nuclear weapons, which says that the threat or use of forc

Read the newspaper report from  The International Herald Tribune, starting on page  2 of this assignment, and answer the following questions:  1. What is the general notion behi

State about the Security Council of United Nations? The Security Council: The Security Council has main responsibility for the preservation of international peace and sec