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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.
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