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Can you summarize KYRS 271B.8-320?
Directors and Officers > Loans to directors.
Short Summary
This legal document, part of the Kentucky Revised Statutes, governs loans to directors of corporations. It states that a corporation is generally prohibited from lending money to or guaranteeing the obligation of a director, unless certain conditions are met. These conditions include obtaining approval from a majority of the votes represented by outstanding voting shares, except those owned or controlled by the benefited director, or having the corporation’s board of directors determine that the loan or guarantee benefits the corporation and approving it. The document also clarifies that loans or guarantees made in violation of this section do not affect the borrower’s liability or the corporation’s liability. However, there is an exemption for loans and guarantees authorized by statutes regulating any special class of corporations. The document does not specify any specific penalties for non-compliance or violation of its provisions.
Whom does it apply to?
Corporations
What does it govern?
Loans to directors
What are exemptions?
Loans and guarantees authorized by statute regulating any special class of corporations
What are the Penalties?
No specific penalties mentioned
Jurisdiction
Kentucky