Indiana Statutes
§ 23-1-35-3 — Loan or guarantee to director
Indiana·Title 23 BUSINESS AND OTHER ASSOCIATIONS·Art. 1 INDIANA BUSINESS CORPORATION LAW·Ch. 35 Standards of Conduct for Directors
(a)Except as provided by subsection (c), 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 loans and guarantee
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Legislative History
As added by P.L.149-1986, SEC.19.
Nearby Sections
15
§ 23-0.5-1-1
Short title§ 23-0.5-1-2
Application§ 23-0.5-1-3
Application; exceptions§ 23-0.5-1-4
Delivery of record§ 23-0.5-1-5
Rules and procedures§ 23-0.5-1-6
Terms dependent on facts ascertainable outside the plan or filed
document; articles of amendment§ 23-0.5-1.5-1
Application of definitions§ 23-0.5-1.5-10
"Filed record"§ 23-0.5-1.5-11
"Filing entity"§ 23-0.5-1.5-12
"Foreign"§ 23-0.5-1.5-13
"General partnership"§ 23-0.5-1.5-14
"Governance interest"§ 23-0.5-1.5-15
"Governing person"§ 23-0.5-1.5-16
"Interest"§ 23-0.5-1.5-17
"Interest holder"