Restrictions on loans to directors: related party financing barred unless member approval and business use conditions met. Companies are prohibited from advancing loans, book debts, guarantees or securities to directors, relatives, partner firms or other persons in whom a director is interested, subject only to specific statutory exceptions. Permitted financing requires a special resolution with full disclosure and that borrowed funds be used for the borrowing entity's principal business activities; other narrow exemptions cover employment service loans, ordinary course lenders charging market rates, and certain intra group financing. Contraventions attract fines and potential imprisonment for officers and recipient directors.