Q8. Under s224, if a company is a subsidiary and its balance sheet has a loan to director which had been carried forward many years ago. In this case, did they violate this section? A subsidiary is automatically not an exempt company. What should the Director do to avoid this issue? Can the director go back to get approved resolution from the shareholder (which is the holding company, 100% owned) Can the resolution be back dated? So far have you seen any auditors report qualify this issue?