162. Loans and quasi-loans to directors, credit transactions and related arrangements

Question 1

162. Loans and quasi-loans to directors, credit transactions and related arrangements

Answer 1

General overview
[162.01] Due to the possibility of making self-dealing transactions with the company, the directors are prohibited from entering into any loan, quasi-loan, credit and other transactions with the company: s 162. As the term “company” is used and not “corporation”, the section seeks to regulate Singapore incorporated companies only. Section 162 does not apply to exempt private companies because these companies are small family concerns: see s 4.