Lesson: Conflict of Interest Provisions

This lesson covers the conflict of interest provisions as per SACS 2002, focusing on restrictions and allowances for directors or executive officers of an issuer. It discusses the prohibition of personal loans not in the ordinary course of business, the allowance of perquisite compensation, and the encouragement of owning more than 10% of common stock. Additionally, the lesson addresses when personal credit loans are permitted – if they adhere to the ordinary course of business or if the same terms of the loan are offered to the general public without preferential treatment. By understanding these provisions, individuals can better grasp the reasons behind these rules and the importance of avoiding conflicts of interest within a company.