Loans Flashcards
1
Q
When can a loan be approved by the board?
A
If the board finds that the loan will benefit the corporation
2
Q
What happens when a director approves an unlawful loan? Or don’t dissent to one if not present at meeting?
A
The violate their duty to the corporation and are jointly/severally liable for any loss that results.
3
Q
Can a corporation lend money to a director under business corporation law?
A
Yes, if the loan is approved by the vote of the majority of shares entitled to vote, not counting borrower shares
