DIRECTOR'S LOAN AGREEMENT

I have seen so many posts and so many people asking about this agreement.

Hope this will help.
It will definitely help everyone out there.
If does just remember in your prayers........javascript:emoticon(':D')


Still need any more help......feel free





Director's loan to (Company Name)
Lender: (Your Name)
Loan: (£££)

I, (Name) director of ..............Company do hereby agree to lend (£££) to ...........Company.

This loan is interest-free, unsecured & subordinated in favour of third-party creditors of the company. The loan is repayable after ......... year/(s).

Your Name

sign
(Director, ..........Company) Date: .../10/2013

being provided this director's loan agreement to a case worker I can imagine him smiling just like your Java script Icon.

Thanks for sharing this nice information.

haider.syed wrote:I have seen so many posts and so many people asking about this agreement.

Hope this will help.
It will definitely help everyone out there.
If does just remember in your prayers........javascript:emoticon(':D')


Still need any more help......feel free





Director's loan to (Company Name)
Lender: (Your Name)
Loan: (£££)

I, (Name) director of ..............Company do hereby agree to lend (£££) to ...........Company.

This loan is interest-free, unsecured & subordinated in favour of third-party creditors of the company. The loan is repayable after ......... year/(s).

Your Name

sign
(Director, ..........Company) Date: .../10/2013

Deleted cos it was bollocks

Must read threads properly.
Must read threads properly.
Must read threads properly.
Must read threads properly.
Must read threads properly.
Must read threads properly.

May I have a copy plz! [EMAIL REMOVED]

Hi

Its says in the agreement that "[b]repayable after ......... year/(s)[/b]". What if the director what to take this as dividends or pay the director back before years.


Thanks.

i am working on apply for tier 1 entrepreneur extension , can any one please help me to get director loan agreement sample and please advise if should i need to attested this agreement, from where.

------------------------------------------------------------------------------------------------

------------------------- 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)

vkctata wrote:Hi

Its says in the agreement that "repayable after ......... year/(s)". What if the director what to take this as dividends or pay the director back before years.


Thanks.

hi

There is a difference between Interest payment and Dividend payment. Interest payment is liability which the company must has to pay in all circumstances on its loan according to loan agreement between parties. Where as dividend is only paid to its shareholders (owners) when company make profit after meeting all business operating expenses and current liabilities (e.g. interest).. If no profit is earned by a company in any accounting period then it won't pay any dividend to its shareholders (owners). Even if profit is made by company, still it is not obligatory to distribute dividend among its shareholders, it is directional. Profit can be retained.

You cannot consider interest payment as dividend.. If it is interest free loan then it is mentioned in the Director loan agreement.

Note: (I have only considered dividend on ordinary shares not other types of company shares such as preference shares)

Hope this help