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The Shareholder Loan Promissory Note is commonly used in Malaysian business practice when a shareholder provides financial support to their company through a loan arrangement. This document is particularly relevant when companies need additional funding but prefer not to dilute existing shareholding or seek external financing. The note must comply with Malaysian legislation, including the Companies Act 2016, Contracts Act 1950, and Stamp Act 1949. It typically includes the loan amount, interest rate, repayment terms, default provisions, and any security arrangements. This document is essential for protecting both the shareholder's interests as a creditor and the company's obligations as a borrower, while maintaining transparency for other stakeholders and regulatory compliance.

1. Parties: Identification of the Maker (Company) and the Payee (Shareholder-Lender), including full legal names, registration/identification numbers, and registered addresses

2. Background: Brief context of the shareholder relationship and the purpose of the loan

3. Definitions: Key terms used in the document including 'Business Day', 'Default Event', 'Interest Rate', 'Loan Amount', and other relevant definitions

4. Promise to Pay: Unconditional promise to pay the principal sum with specified interest rate, including the exact amount, currency, and payment timeline

5. Interest Rate and Calculation: Detailed specification of the interest rate, calculation method, and payment frequency

6. Repayment Terms: Schedule and method of repayment, including whether installments are allowed and any early repayment provisions

7. Events of Default: Circumstances constituting default and consequences thereof

8. Representations and Warranties: Standard representations about corporate authority, binding obligations, and no conflicts

9. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes

10. Notices: Process and addresses for serving notices between parties