Section 156 of The Companies Act No. 17 of 2015: Meaning of "quasi-loan" and related expressions
(1) For the purposes of this Division, a quasi-loan is a transaction under whichone party (a creditor)—
(a) agrees to pay, or pays otherwise than in accordance with an agreement, an amount for another person (a borrower); or
(b) agrees to reimburse, or reimburses otherwise than in accordance with an, agreement, expenditure incurred by another party for another person (also. a borrower)—
(i) on terms that the borrower, or a third person on the borrower's behalf, will reimburse the creditor; or
(ii) in circumstances giving rise to a liability on the borrower to reimburse the creditor.
(2) A reference in subsection (1) to the person to whom a quasi-loan is madeis a reference to the borrower
(3) The liabilities of the borrower under a quasi-loan include the liabilities of any person who has agreed to reimburse the creditor on behalf of the borrower.
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