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    Question

    Section 185 prohibits loans to directors.

    Consider:  (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 — special resolution, conditions, or exempt categories apply; not ordinary resolution.

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