Prohibited Agreements: Article 62 of the Joint Stock Company (SA) in Morocco.
Article 62 of the Code of Joint Stock Companies (SA)
In the business world, transparency and ethical management are essential for maintaining investor trust and ensuring the sustainability of companies. The Code of Joint Stock Companies (SA) in Morocco contains many provisions aimed at regulating the practices of business leaders. Among these rules, Article 62 plays a key role by prohibiting directors from benefiting from certain financial advantages from their own company. But why is this prohibition so important? Let’s explore this article and its implications for good corporate governance.
Understanding Article 62: Prohibited Agreements
Article 62 of the Code of Joint Stock Companies (SA) stipulates that directors of a joint stock company cannot borrow money from their own company. They are also not allowed to be granted bank overdrafts or have their debts guaranteed by the company. This prohibition extends not only to the directors themselves but also to their spouses, close relatives, and representatives of legal entities that are directors.