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What is a Director’s/Shareholder’s Loan Agreement?
What is a Director’s/Shareholder’s Loan Agreement?

Less than 4 mins read on Director's/Shareholder's Loan Agreement.

Sriyanka Nakarmi avatar
Written by Sriyanka Nakarmi
Updated over a week ago

A Director’s/Shareholder’s Loan Agreement is a loan agreement for a company to borrow money from its director or shareholder.

Contrary to a commercial loan agreement, a loan under a Director’s/Shareholder’s Loan Agreement can be interest free and repayable on demand.

Given the relationship between the borrower and the lender, a Director’s/ Shareholder’s Loan Agreement does not contain extensive representations and warranties, nor any obligations or restrictions on the part of the borrower.

Important points to be included in the agreement:

  • Principal amount;

  • Interest rate (if any);

  • Availability period; and

  • Dates for repayment.

Document available for Hong Kong & Singapore jurisdiction

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