Victorian Consolidated Legislation

State Owned Enterprises Act 1992 - SECT 38

State business corporation not to make loans to directors

38. State business corporation not to make loans to directors



(1) The powers of a State business corporation do not include a power, whether
directly or indirectly-

   (a)  to make a loan to a director of the State business corporation, a
        spouse of such a director, or a relative (as defined in the
        Corporations Act) of such a director or spouse; or

   (b)  to give a guarantee or provide security in connection with a loan made
        or to be made by another person to a director, spouse or relative
        referred to in paragraph (a).

(2) Nothing in subsection (1) prohibits a State business corporation entering
into an agreement or arrangement with a person referred to in subsection (1)
if similar agreements or arrangements are entered into by the State business
corporation with members of the public on the same terms and conditions.