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Texas Business Organizations Code - BUS ORG § 22.225. Loan to Director Prohibited

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) A corporation may not make a loan to a director.

(b) The directors of a corporation who vote for or assent to the making of a loan to a director, and any officer who participates in making the loan, are jointly and severally liable to the corporation for the amount of the loan until the loan is repaid.

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Cite this article: FindLaw.com - Texas Business Organizations Code - BUS ORG § 22.225. Loan to Director Prohibited - last updated January 01, 2024 | https://codes.findlaw.com/tx/business-organizations-code/bus-org-sect-22-225/

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