South Carolina Statutes
§ 33-8-320 — Loans to directors.
(a)Except as provided by subsection (c), a corporation may not directly or indirectly 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
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South Carolina § 33-8-320 (Loans to directors.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.
Legislative History
HISTORY: Derived from 1976 Code SECTION 33-13-170 [1962 Code SECTION 12-18.17; 1962 (52) 1996; 1981 Act No. 146, SECTION 2; Repealed, 1988 Act No. 444, SECTION 2]; 1988 Act No. 444, SECTION 2.
Nearby Sections
15
§ 33-8-102
Qualifications of directors.§ 33-8-103
Number and election of directors.§ 33-8-105
Terms of directors generally.§ 33-8-106
Staggered terms for directors.§ 33-8-107
Resignation of directors.§ 33-8-108
Removal of directors by shareholders.§ 33-8-110
Vacancy on board.§ 33-8-111
Compensation of directors.§ 33-8-200
Meetings.§ 33-8-210
Action without meeting.§ 33-8-220
Notice of meeting.§ 33-8-230
Waiver of notice.