Western Australian Consolidated Acts Western Australian Consolidated Acts (1) It shall not be
lawful for a company, other than a co-operative company registered under the
provisions of the repealed Acts or those of Part VI, in any circumstances or
for any purpose to give whether directly or indirectly, and whether by means
of a loan, guarantee, the provision of security or otherwise any financial
assistance to any director of the company.
(2) Subject as
provided in this subsection, it shall not be lawful for a company to give,
whether directly or indirectly, and whether by means of a loan, guarantee, the
provision of security or otherwise, any financial assistance for the purpose
of or in connection with a purchase or other dealing made or to be made by any
person of or in any shares in the company: Provided that nothing in this
subsection shall be taken to prohibit —
(a)
where the lending of money is part of the ordinary business of a company, the
lending of money by the company in the ordinary course of its business to any
person not being a director of the company;
(b) the
provision by a company in accordance with any scheme for the time being in
force, of money for the purchase by trustees of fully paid shares in the
company to be held by or for the benefit of employees not being directors of
the company;
(c) the
making by a company of loans to persons other than directors, bona fide in the
employment of the company with a view to enabling those persons to purchase
fully paid shares in the company to be held by themselves by way of beneficial
ownership.
(3) The aggregate
amount of any outstanding loans made under the authority of provisos (b) and
(c) to subsection (2) shall be shown as a separate item in the balance
sheet.
(4) If a company acts
in contravention of the provisions of this section, the company and every
director and every officer of the company who is in default shall be liable to
a fine not exceeding $100.
[Section 59 amended by No. 47 of 1949
s. 9; No. 113 of 1965 s. 8(1).]