The B.C. Securities Commission has ordered two directors of a B.C.-based public company to resign from their posts after they admitted that their company made undocumented loans that has no apparent business merit to an associate.

Donald MacPhee and Bhupinder Herar cannot be directors or officers of any reporting issuers for three years.

MacPhee was the president and a director of Bushman Resources Inc. and Herar was a director of the company. Bushman was delisted from the TSX Venture Exchange on June 5, 2002.

In settlements with the BCSC, the pair admitted that Bushman made a $217,000 loan to a numbered company owned by an associate, Dilbagh Gujral, and a $150,000 loan to Globetech Ventures Corp., a company listed on the U.S. Over-the-Counter-Bulletin Board. Gujral is the president of Globetech and Herar was a company insider.

The BCSC says the loans were made “without documentation, any apparent business merit, and public disclosure”.

To date, the loans have not been repaid.

As part of the settlement, the pair must also pay the commission’s investigation costs.