Post
by asfan123 » Sat Jul 04, 2015 5:14 am
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------------------------- Director Loan Agreement (Sample)------------------------------
----------------------------------------Between-----------------------------------------------
----------------------------------Mr ABC and Mr XYZ-----------------------------------------
-------------------------------------------And--------------------------------------------------
---------------------------------Business Company Ltd--------------------------------------
-------------------------------------------------------------------------------------------------
Main Contents of Director Loan Agreement
This agreement is made and entered by between Mr ABC & Mr XYZ independent persons and referred as to as ‘Directors’ and Business Company Ltd.
In consideration of the covenant and condition hereinafter set forth, Mr ABC and Mr XYZ – Directors and company agrees as follows:
1 – Term
This agreement commences from the start of ARD (accounting reference date) of company. The Directors & Company may terminate the loan agreement at any time with mutual consent of both the parties except for payment due to third party/parties creditors prior to date of such terminations
2 – Interest Rate
There is consensus between both the parties that the Directors Loan is “Interest Free”.
3 – Tenure
The tenure of Loan Agreement will be for three years and renewable with the consensus of both the parties depending upon the profitability index of an enterprise.
4 – Loan Security
The Director’s Loan is unsecured and subordinated in favour of third party short term and/or long term creditors.
5 – Loan Amount
The outstanding balance of loan is amounting to £50,000.00 as on 13th June 2015.
6 – Confidentiality and Ownership
The loan agreement recognises and acknowledges the confidentiality of all financial and other information of the company obtained by directors during the performance of his duties and obligations
Executed this 13th June 2015
Authorised Signatures
(Company Officials)
1. ____________________
Mr XYZ – Director
2. ____________________
Mr XYZ – Director
Authorised Signatures
(Lenders)
1. ____________________
Mr ABC
(D.O.B: 02/01/1985)
2. ____________________
Mr XYZ
(D.O.B: 01/01/1986)
