Director’s Loan Agreement - Unsecured
This Director’s Loan Agreement – Unsecured records the terms of an unsecured loan given by a company to a director of a company or a person connected with a director.
This Loan Agreement should only be used where the aggregate value of the loan is below £10,000 so that shareholder approval is not required.
[Note that the general rule under the Companies Act 2006 is that a company may not make a loan to its director, or give a guarantee or provide security in connection with a loan made by any other person to such a director, unless the transaction has been approved by a majority of the company’s shareholders. There are a few exceptions to this rule; shareholder approval is not required where the aggregate value of the loan is below £10,000, where the loan is for expenditure (of under £50,000) on company business, or where the loan is to provide the director with funds to defend civil or criminal proceedings in connection with the company, shareholder approval is not required.]
The loan recorded in this agreement is unsecured. The funds can be drawn in one or more advances and the optional wording in square brackets should be amended accordingly.
This Director’s Loan Agreement – Unsecured can also be found in the ‘Dealing with Directors’ folder. The document is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.
Once you have purchased access to the appropriate document folder click on the “Download Document” button below. You will be asked what you want to do with the file. It is recommended that you save the document to a location of your choice prior to viewing.