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      Question

      Section 185 prohibits loans to directors.

      Consider:ย  (1) It covers loans, guarantees, and securities. (2) Applies to directors and persons in whom they are interested. (3) Ordinary resolution can approve such loans. (4) Some exemptions exist for subsidiary companies.
      A 1, 2, 4 Correct Answer Incorrect Answer
      B 1 only Correct Answer Incorrect Answer
      C 1 and 2 Correct Answer Incorrect Answer
      D 2, 3, 4 Correct Answer Incorrect Answer
      E 3 and 4 Correct Answer Incorrect Answer

      Solution

      (3) incorrect โ€” special resolution, conditions, or exempt categories apply; not ordinary resolution.

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