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Shareholders or Directors May Wish for the Corporation to Lend

Question 8

Multiple Choice

Shareholders or directors may wish for the corporation to lend them money as an indirect method to get back some of their investment. The CBCA prohibits this activity


A) only when it would endanger a corporation's solvency, or reduce the value of its assets to less than the amount of its stated capital.
B) under all circumstances.
C) since it always jeopardises the position of existing creditors.
D) but only for directors.
E) but only for shareholders.

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