CIMA Fundamentals of Ethics, Corporate Governance and Business Law BA4 Question # 22 Topic 3 Discussion

CIMA Fundamentals of Ethics, Corporate Governance and Business Law BA4 Question # 22 Topic 3 Discussion

BA4 Exam Topic 3 Question 22 Discussion:
Question #: 22
Topic #: 3

Which of the following is correct in relation to loans to directors of a public company?


A.

A public company which provides a loan to one of its directors commits a criminal offence unless the loan is approved by the shareholders


B.

If a public company pays the debts of one of its directors on terms that the payment must be repaid by the director, the shareholders must approve the payment


C.

A public company cannot make loans to its directors


D.

A public company is not subject to any restrictions when making a loan to one of its directors


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