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Can I give a Director loan with interest to the company without the knowledge of all shareholders?

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asked on Sep 25, 2018 at 12:06
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edited on Oct 16, 2018 at 01:13
 
In short, I would like to ask if I give a Director loan with interest to the company without the knowledge of all shareholders?

Here's the scenario:
- Sdn. Bhd. company
- 3 shareholders, 2 directors

Director A (Me) = 40% of the shares
Director B = 40% of the shares
Shareholder C = 20% of the shares

Director A (Me) is representing myself and Shareholder C.

The company now needs a huge loan to acquire some equipments. No banks will give the loan.

So I've decided to give them a loan with certain conditions.
Example:
- An agreement that the current company asset would be as collateral. In case of default, company needs to pay me for the loan first then only other creditors.
- The company has to pay me 170% of the equipment price in 3 years (20% interest p.a.)

This is agreed by Director A (me) and Director B but we did not tell Shareholder C yet.
Are we obliged to tell him?
Are we obliged to get his approval? Or will 50% voting power suffice?

Thank you very much for reading and helping me with this.
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3 Answers

answered on Sep 25, 2018 at 12:27
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edited Oct 16, 2018 at 01:14
 
This has nothing to do with voting power. This method is association with criminal breach of trust (CBT)..
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answered on Sep 25, 2018 at 15:19
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edited Oct 16, 2018 at 01:14
 
I see. Thanks.

So it's illegal?
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answered on Sep 25, 2018 at 17:15
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edited Oct 16, 2018 at 01:19
 
Selling drugs is illegal, buy 4D from underground agents is illegal, taking drugs is illegal, prostitution is illegal... Can do anything you want but just don't get caught or if stakeholders lodge a report.
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