Director’s Loan Agreement - Unsecured

This Director’s Loan Agreement - Unsecured records the terms of an unsecured loan made by a company to one of its directors, or to a person connected with a director.

When To Use This Director’s Loan Agreement (Unsecured) Template

This template should only be used where the aggregate value of the loan is below £10,000, so that shareholder approval is not required.

Key Legal Context

Under the Companies Act 2006, the general rule is that a company may not make a loan to a director (or give a guarantee or provide security in connection with a loan to a director) unless the transaction has been approved by a majority of the company’s shareholders. There are exceptions, including 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 funds to defend civil or criminal proceedings in connection with the company.

What This Template Covers

The loan documented by this agreement is unsecured. The funds can be drawn in one or more advances, and optional wording is included to reflect whether the loan is advanced in a single amount or in stages.

Director’s Loan Agreement - Unsecured is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.