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Loans to directors, etc.

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.... any private company of which any such director is a director or member; (d) any body corporate at a general meeting of which not less than twenty-five per cent of the total voting power may be exercised or controlled by any such director, or by two or more such directors, together; or (e) any body corporate, the Board of directors, managing director [2][* * *] or manager whereof is accustomed to act in accordance with the directions or instructions of the Board, or of any director or directors, of the lending company. [3][(2) Sub-section (1) shall not apply to___ (a) any loan made, guarantee given or security provided___ (i) by a private company unless it is a subsidiary of a public company, or (ii) by a banking company; [4][(....

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....mprisonment shall be imposed under this sub-section; and where the loan has been repaid in part, the maximum punish­ment which may be imposed under this sub-section by way of imprisonment shall be proportionately reduced. (5) All persons who are knowingly parties to any contravention of sub-section (1) or (3) shall be liable, jointly and severally, to the lending company for the repayment of the loan or for making good the sum which the lending company may have been called upon to pay in virtue of the guarantee given or the security provided by such company. (6) No officer of the lending company or of the borrowing body corporate shall be punishable under sub-section (4) or shall incur the liability referred to in sub-section (5) in r....