163A. Exception for expenditure on defending proceedings, etc.

Question 1

163A. Exception for expenditure on defending proceedings, etc.

Answer 1

General overview
[163A.01] Sections 163A and 163B are new sections introduced by Act No 36 of 2014. Section 163A permits the company to provide the director with a loan to meet or avoid any expenditure, i.e. legal expenses incurred or to be incurred by him to defend any criminal or civil proceedings in connection with any alleged negligence, default, breach of duty or trust in relation to the company, or in any application for relief under ss 76A(13) and 391.