Prohibition on loans

(1) A local company shall not, after the commencement of this Act, directly or indirectly– (a) acquire or deal in its own shares or lend money or make advances on the security of its own (b) lend any of its funds to a director or officer of the company or to the wife or a child of a director or officer except on the security of its own policies; (c) lend any of its funds to another company where more than one-third of the shares of that other company are owned either jointly or severally by a director or an officer of the company or by the spouse or a child of a director or of an officer or by any combination of such persons; (d) grant unsecured credit facilities to any person, except for temporary cover which in the case of general insurance does not exceed sixty days; 68 (e) pay any dividend on its shares until all its capitalised expenditure (including preliminary expenses, share selling commission and brokerage) not represented by tangible assets, has been completely written off; and (f) enter into any guarantee or provide any security in connection with a loan by any other person to any such person or company as is mentioned in paragraph (b) or (c). (2) Sub-section (1) shall apply to a foreign company in respect of such insurance business as the company is carrying on in Belize.