Finance Companies Act · s 23A

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23A.
Prohibition of credit facilities to director and officer
(I) Unless exempted by the Authority in writing with or without conditions, or except as provided under subsection (2) or (3), no finance company shall give any credit facility to -
(a) any of its directors or officers or any other person receiving remuneration from it (other than any accountant, advocate, architect, estate agent, doctor and any other person receiving remuneration from it in respect of his professional services);

Finance Companies
(b) any body corporate or unincorporate, firm or sole proprietorship, in which any of its directors or officers is a director or manager, or for which any of its directors or oficers is a guarantor or a an agent;
(c) any company in which any of its directors or officers has any interest in the shares of that company; or
(d) any person for whom any of its directors or officers has given any guarantee or other undertaking whatsoever involving financial liability.
(2) A finance company may give to any of its officers or its executive director -
(a) any credit facility which is provided for under his scheme of service; or
(b) where there is no such provision and the finance company is satisfied that special or compassionate circumstances exist, a credit facility not exceeding at any one time -
(i) 6 months' remuneration of that officer or executive director; or
(ii) his remuneration for such longer period as may be approved by the Authority, and subject to such other terms and conditions as the finance company thinks fit.
(3) The provisions of -
(a) subsection (l)(a) does not apply to the giving of any credit facility to the spouse, child or parent of an officer, including an executive director, of that finance company for the purchase of a residence; and
(b) subsection (l)(c) does not apply to the giving of any credit facility by a finance company to a company in which none of the directors or officers of that finance company has any material interest in the shares of that company.
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Finance Companies
CAP. 89 23
(4) In this section -
(a) "director" or "officer?' includes a spouse, child or parent of that director or officer; and
(3) the Authority shall specify what constitutes a material interest in the shares of a company.

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s 23AProhibition of credit facilities to director and officer

(I)

Unless exempted by the Authority in writing with or without conditions, or except as provided under subsection (2) or (3), no finance company shall give any credit facility to -

(a)

any of its directors or officers or any other person receiving remuneration from it (other than any accountant, advocate, architect, estate agent, doctor and any other person receiving remuneration from it in respect of his professional services);

Finance Companies

(b)

any body corporate or unincorporate, firm or sole proprietorship, in which any of its directors or officers is a director or manager, or for which any of its directors or oficers is a guarantor or a an agent;

(c)

any company in which any of its directors or officers has any interest in the shares of that company; or

(d)

any person for whom any of its directors or officers has given any guarantee or other undertaking whatsoever involving financial liability.

(2)

A finance company may give to any of its officers or its executive director -

(a)

any credit facility which is provided for under his scheme of service; or

(b)

where there is no such provision and the finance company is satisfied that special or compassionate circumstances exist, a credit facility not exceeding at any one time -

(i)

6 months' remuneration of that officer or executive director; or

(ii)

his remuneration for such longer period as may be approved by the Authority, and subject to such other terms and conditions as the finance company thinks fit.

(3)

The provisions of -

(a)

subsection (l)(a) does not apply to the giving of any credit facility to the spouse, child or parent of an officer, including an executive director, of that finance company for the purchase of a residence; and

(b)

subsection (l)(c) does not apply to the giving of any credit facility by a finance company to a company in which none of the directors or officers of that finance company has any material interest in the shares of that company.

•

Finance Companies

CAP. 89 23

(4)

In this section -

(a)

"director" or "officer?' includes a spouse, child or parent of that director or officer; and

(3)

the Authority shall specify what constitutes a material interest in the shares of a company.