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