Which of the following is correct in relation to loans to directors of a public company?
A . A public company which provides a loan to one of its directors commits a criminal offence unless the loan is approved by the shareholders
B . If a public company pays the debts of one of its directors on terms that the payment must be repaid by the director, the shareholders must approve the payment
C . A public company cannot make loans to its directors
D . A public company is not subject to any restrictions when making a loan to one of its directors
Answer: B