14A:6-11. Loans to directors, officers or employees
103 words·~1 min read·
/nj/title-14a/chapter-6/14a-6-11·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A corporation may lend money to, or guarantee any obligation of, or otherwise assist, any director, officer or employee of the corporation or of any subsidiary, whenever, in the judgment of the directors, such loan, guarantee or assistance may reasonably be expected to benefit the corporation. The loan, guarantee or other assistance may be made with or without interest, and may be unsecured, or secured in such manner as the board shall approve, including, without limitation, a pledge of shares of the corporation, and may be made upon such other terms and conditions as the board may determine.
L.1968, c.350; amended 1973,c.366,s.26; 1988,c.94,s.32.