A shareholder of a corporation may not also be a creditor to the company, as there would be a conflict of interest.

Name: A shareholder of a corporation may not also be a creditor to the company, as there would be a conflict of interest.
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Question

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A shareholder of a corporation can also be a creditor to the company, but they must disclose the conflict of interest and recuse themselves from any decisions related to their loan.

A Shareholder of a Corporation May Not Also Be a Creditor