California Corporations Code

§ 7235

CORP § 7235Div. 2 · Title 1 · Part 3 · 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

Amended by Stats. 1983, Ch. 1085, Sec. 5.