Document background
The Shareholder Loan Agreement is commonly used when a company requires additional funding and opts to obtain it from existing shareholders rather than external lenders. This approach is particularly valuable for companies that may have limited access to traditional banking facilities or prefer more flexible financing arrangements. The agreement, governed by Irish law, provides a formal structure for what might otherwise be informal arrangements, protecting both the lending shareholder and the borrowing company. It includes essential details such as loan amount, interest rates, repayment terms, and any security arrangements, while ensuring compliance with Irish corporate law requirements. The document is particularly important for maintaining clear financial records, establishing enforceable rights and obligations, and addressing tax implications under Irish legislation.
