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- Alaska Statutes.
- Title 10. Corporations and Associations
- Chapter 6. Alaska Corporations Code
- Section 485. Loans to Directors, Officers, and Employees.
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. Officers: Tenure, Resignation, Agency, Duty of Care.
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. Indemnification of Officers, Directors, Employees, and Agents; Insurance.
AS 10.06.485. Loans to Directors, Officers, and Employees.
- (a) A loan may not be extended to an officer or employee without authorization by the board. A loan may not be extended to
a director without the approval of two-thirds of the voting shares. An employee or officer who is also a director is
considered a director for purposes of this section. A shareholder is not disqualified from voting on a loan to a
shareholder as a director because of personal interest.
- (b) A loan to a director, officer, or employee and a loan secured by the shares of the corporation may not be made unless
the loan would be permissible as a distribution under AS 10.06.358
- 10.06.365. A loan under this subsection impairs the
retained earnings or paid-in capital accounts to the extent of the loan.
- (c) For purposes of this section, a loan may consist of cash, securities, or personal or real property.
- (d) If a corporation acts as a guarantor on a loan to a director, officer, or employee, the guarantee is treated as a loan
under this section.
- (e) A director, officer, or employee of an affiliate corporation is a director, officer, or employee of the lending
corporation for purposes of this section.
- (f) A loan is to be judged by the duties of directors and officers to act in good faith in a manner reasonably believed to
be in the best interests of the corporation and with the care, including reasonable inquiry, that an ordinarily prudent
person in a like position would use under similar circumstances.
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