Clause 83

Sections 162 and 163 shall not apply to anything done by a company —

to provide a director of the company with funds by way of any loan to meet expenditure incurred or to be incurred by him —

in defending any criminal or civil proceedings in connection with any alleged negligence, default, breach of duty or breach of trust by him in relation to the company; or

in connection with an application for relief; or

to enable any such director to avoid incurring such expenditure,if it is done on the terms provided in subsection (2).(2) The terms referred to in subsection (1) are —

that the loan is to be repaid, or (as the case may be) any liability of the company incurred under any transaction connected with the thing done is to be discharged, in the event of —

the director being convicted in the proceedings;

judgment being given against him in the proceedings; or

the court refusing to grant him relief on the application; and

that it is to be repaid or discharged not later than 14 days after —

the date when the conviction becomes final;

the date when the judgment becomes final; or

the date when the refusal of relief becomes final.(3) For the purposes of this section —

a conviction, judgment or refusal of relief becomes final —

if it is not appealed against, at the end of the period for bringing an appeal; or

if it is appealed against, when the appeal (or any further appeal) is disposed of; (b)an appeal or further appeal is disposed of —

if it is determined and there is no right of further appeal, or if there is a right of further appeal, the period for bringing any further appeal has ended; or

if it is abandoned or otherwise ceases to have effect; and

a reference to the repayment of a loan includes the payment of any interest which is chargeable under the terms on which the loan was given.(4) The reference in this section to an application for relief is to an application for relief under section 76A(13) or 391.Exception for expenditure in connection with regulatory action or investigation163B. Sections 162, 163 and 172 shall not apply to anything done by a company —

to provide a director of the company with funds by way of any loan to meet expenditure incurred or to be incurred by him in defending himself —

in an investigation by a regulatory authority; or

against any action proposed to be taken by a regulatory authority,in connection with any alleged negligence, default, breach of duty or breach of trust by him in relation to the company; or

to enable any such director to avoid incurring such expenditure.”.