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Director loan to company - Sample document

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  • 03-11-2016 1:45pm
    #1
    johnsmith6256
    Registered Users Posts: 15 ✭


    Hi,

    As director of my limited company, I am making a director loan to the company.

    I wrote the document below. Could you advice if it contains all the required mandatory information please?

    The parts in italic need to be replaced by the actual names and values.
    DIRECTOR_NAMES, directors of COMPANY_NAME Ltd (“the company”) hereby approve a director loan of an amount of €AMOUNT from DIRECTOR_NAME to the company at an interest rate of zero percent. The company shall repay this loan within a period of one year.


    Regards,
    John.


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    #2
    dbran
    Registered Users Posts: 2,094 ✭✭✭dbran


    Hi

    The Companies Act 2014 states that in a case where a director makes a loan to the company and the terms of the loan are ambigous or not clear then the loan is presumed to be a gift to the company.

    There are no mandatory terms to be included but the fact that the documentation is itself only a two line paragraph may mean that there is insufficient detail describing the arrangement. If it was a commercial loan arrangement there would probably be more conditions specified.

    dbran


  • Options
    #3
    johnsmith6256
    Registered Users Posts: 15 ✭johnsmith6256


    Thanks. I will look for a regular loan agreement template.


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