Printable Format17-6303. Loans to or guaranty of obligations of officers and employees. Any corporation may lend money to, or guarantee any obligation of, or otherwise assist any officer or other employee of the corporation or of its subsidiary, including any officer or employee who is a director of the corporation or its subsidiary, whenever, in the judgment of the directors, such loan, guaranty or assistance may reasonably be expected to benefit the corporation. The loan, guaranty or other assistance may be with or without interest, and may be unsecured, or secured in such manner as the board of directors shall approve, including, without limitation, a pledge of shares of stock of the corporation. Nothing contained in this section shall be deemed to deny, limit or restrict the powers of guaranty or warranty of any corporation at common law or under any statute.
History: L. 1972, ch. 52, § 25; July 1.
Source or Prior Law:
17-3006; 8 Del. C. § 143.
Cross References to Related Sections:
Authority to loan money for corporate purposes, see 17-6102 (14).
Law Review and Bar Journal References:
"The Kansas Corporation Code of 1972," William E. Treadway, 40 J.B.A.K. 301, 341 (1971).
CASE ANNOTATIONS
1. Cited; suspension of attorney for unauthorized borrowing of funds from nonprofit corporation while serving as treasurer examined. In re Neuschwander, 242 Kan. 313, 747 P.2d 104 (1987).
2. Facts as presented insufficient to void loan from defendant corporation to president. Schmidt v. Farm Credit Services, 738 F. Supp. 1372, 1375 (1990).