Tips from Centra Lawyers

What is a shareholders’ loan agreement?

A shareholders’ loan agreement records the arrangement between the shareholder and the company whereby the a shareholder in a company injects money into the company. This loan is repayable to the company, with interest, to the shareholder on the arranged terms. The shareholder could demand collateral that may take the form of a variety of assets, including a debenture or shares in the company.

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