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| Prohibition on Personal Loans to Directors and Executive Officers of Public Companies (PDF) Eversheds Sutherland  Oct. 9, 2002 8 pages. Excerpt: [T]he Sarbanes-Oxley Act of 2002 prohibits U.S. and non-U.S. public companies from making or arranging for a personal loan to any director or executive officer of the company ... Loans maintained on July 30, 2002 are 'grandfathered,' provided that they are not renewed or materially modified ... Caution is needed in interpreting the rule as it may apply to a number of common transactions involving executive officer and director compensation and benefits. |
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