California Corporations Code

§ 12375

CORP § 12375Div. 3 · Title 1 · Part 2 · Ch. 2 · Art. 3

Statute text

(a)Unless prohibited by the articles or bylaws, a corporation may loan money or property to, or guarantee the obligation of, any director or officer of the corporation or of its parent, affiliate or subsidiary, provided:

(1)The board determines the loan or guaranty may reasonably be expected to benefit the corporation.

(2)Prior to consummating the transaction or any part thereof, the loan or guaranty is either:

…

Legislative history

Repealed and added by Stats. 1983, Ch. 792, Sec. 17.