Section 180.0832. Loans to directors.

 

(1)  Except as provided in sub. (3) , a corporation may not lend money to or guarantee the obligation of a director of the corporation unless any of the following occurs:

(a) The particular loan or guarantee is approved by a majority of the votes represented by the outstanding voting shares of all classes, voting as a single voting group, except the votes of shares owned by or voted under the control of the benefited director.

(b) The corporation's board of directors determines that the loan or guarantee benefits the corporation and either approves the specific loan or guarantee or a general plan authorizing loans and guarantees.

(2)  The fact that a loan or guarantee is made in violation of this section does not affect the borrower's liability on the loan.

(3)  This section does not apply to an advance to a director that is permitted by s. 180.0853 or 180.0858 or that is made to defray expenses incurred by the director in the ordinary course of the corporation's business.

1989 a. 303 .