What are the ethical issues and points of conflict in this case?

The ethical issues and points of conflict in this case include:
1. The potential for self-dealing by the board members, who may be more interested in their own personal gain than in what is best for the company.
2. The use of corporate funds to pay off board members or executives, which could be seen as a misuse of resources.
3. Questions about whether appropriate procedures were followed in approving and executing the loan agreement between Dale Inc. and its shareholders/board members.
4. Conflict of interest if any board member has an ownership stake in another company that stands to benefit from the loan agreement or other transactions with Dale Inc.