Arkansas Statutes
§ 4-27-832 — Loans to directors
Arkansas·Title 4
(a)Except as provided by subsection (c) of this section, a corporation may not lend money to or guarantee the obligation of a director of the corporation unless:
(1)the particular loan or guarantee is approved by a majority of the votes represented by the outstanding voting shares of all classes, voting as a single voting group, except the votes of shares owned by or voted under the control of the benefited director; or (2) the corporation's board of directors determines that the loan or guarantee benefits the corporation and either approves the specific loan or guarantee or a general plan authorizing loans and guarantees.
(b)The fact that a loan or guarantee is made in violation of this section does not affect the borrower's liability on the loan.
(c)This section does not apply to loa
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Arkansas § 4-27-832 (Loans to directors) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.
Legislative History
Acts 1987, No. 958, § 64-820.
Nearby Sections
15
§ 4-1-101
Short titles§ 4-1-102
Scope of subtitle§ 4-1-104
Construction against implicit repeal§ 4-1-105
Severability§ 4-1-106
Use of singular and plural - Gender§ 4-1-107
Section captions§ 4-1-201
General definitions§ 4-1-202
Notice - Knowledge§ 4-1-204
Value§ 4-1-205
Reasonable time - Seasonableness§ 4-1-206
Presumptions