Inter-corporate loans and investments: board approval and shareholder special resolution required when exposures exceed statutory limits. Inter-corporate lending and investments are constrained by statutory exposure limits; exceeding those limits requires prior special resolution. Board sanction with unanimous directors present and, where applicable, prior approval of a public financial institution is required; loans must bear interest no lower than the prevailing bank rate. Companies in specified regulatory default are prohibited from inter-corporate advances until the default subsists. A mandatory register of every investment, loan, guarantee or security must be maintained at the registered office, open to member inspection, and central guidelines and specified exemptions apply.
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Inter-corporate loans and investments: board approval and shareholder special resolution required when exposures exceed statutory limits.
Inter-corporate lending and investments are constrained by statutory exposure limits; exceeding those limits requires prior special resolution. Board sanction with unanimous directors present and, where applicable, prior approval of a public financial institution is required; loans must bear interest no lower than the prevailing bank rate. Companies in specified regulatory default are prohibited from inter-corporate advances until the default subsists. A mandatory register of every investment, loan, guarantee or security must be maintained at the registered office, open to member inspection, and central guidelines and specified exemptions apply.
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