Loans to directors, Business Law and Ethics

Assignment Help:

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.


Related Discussions:- Loans to directors

Law of contract, Law of Contract: Mr.Sakr who owns a factory in Baabda...

Law of Contract: Mr.Sakr who owns a factory in Baabda for manufacturing furniture, signed a contract in his factory in 12-7-2009 with Mr.Abdo who used to import woods from Bra

What is meant by the supremacy of parliament, Question: (a) Define dem...

Question: (a) Define democracy. How far is the famous saying of former president of USA, Abraham Lincoln valid today? (b) Argue the case for and against the introduction

Strong and weakness of acts of parliament, Strong and Weakness of Acts of P...

Strong and Weakness of Acts of Parliament: There an Act of Parliament may be said to possess the giving advantages: as; (i) Democratic in nature Now here it is democrati

Tort law and employment law, Tort law and Employment law: Pat, a build...

Tort law and Employment law: Pat, a builder, is an employee of Tom's. One day on site the scaffolding that Pat is standing on collapses and he suffers personal injuries. The s

Adequacy of consideration - law of contract, Adequacy of consideration - La...

Adequacy of consideration - Law of Contract Well provided that consideration is sufficient, or actual it necessitate not be adequate.  Hence the court will not compare the val

Give detail explanation of credibility problem, Give detail explanation of ...

Give detail explanation of Credibility problem There are indications that such credibility problem stems from a tension between the goal of encouraging innovation and investme

When do property, QUESTION 1 (a) What are the ways in which a contract ...

QUESTION 1 (a) What are the ways in which a contract may be terminated? (b) Elaborate on two of them QUESTION 2 When do property, risk and title pass in a contract?

Liability - company secretary, Liability:             The secretary is...

Liability:             The secretary is an officer of the company and thus he owes fiduciary duties to the company which are similar to those of a director, eg. he must act in

Registration procedures, Registration Procedures: The procedures to be...

Registration Procedures: The procedures to be followed by persons who intend to form a registered company will depend on whether the proposed company is to be a public company

Presumptions, Presumptions: Therefore in their attempt to construe sta...

Presumptions: Therefore in their attempt to construe statutes that courts of law are guided through the subsequent assumptions or presumptions.; (a)   That the statute was

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd