1. Except for the financial institutions that are subject to the control and supervision of the Central Bank, it shall not be permitted for a joint stock company to provide any loans to any of its directors, nor to enter into guarantees or provide any collaterals in connection with any loans granted to them. Any loan granted to the director's spouse, children or relatives up to the second degree shall be deemed a loan granted in accordance with the provisions of this Decree Law. 2. No loan may be granted to a company in case any of its directors or his spouse, children or relative up to the second degree holds over 20% of its capital. 3. Any agreement that conflicts with the provisions of this Article shall be null and void. The auditor shall refer, in their report submitted to the General Assembly of the company, to such loans and credits granted to the directors and the extent to which the company complies with the provisions of this Article.
Interpretation and application must be checked against the official text and current version.