A shareholder is an individual or institution that buys from a company and legally owns a percentage of it. In this agreement, the loan must be terminated in one day, is unsecured and repayable and convertible and convertible at the discretion of the company (from the date of repayment). Since the loan can be repaid or converted at the company`s choice, this converted loan is virtually non-capital and business-friendly – depending on the interest rate and/or the conversion price of the shares. This loan agreement does not include lender-friendly provisions, which would normally be included in loan contracts that document independent third-party loans. 5.3. Periodic distributions of net income. Subject to possible un distributed profits and legal requirements for business distributions, the company`s net income may be distributed to shareholders quarterly in relation to the number of shares of the company owned by them. These distributions are approved by all shareholders. Shareholders may choose not to distribute, but to offer the funds in the form of loans to the group.
6.2. Repayment. The company`s repayment of shareholder loans is made when shareholders agree that there are sufficient corporate funds to pay off the loan. Shareholder loans are paid in order of priority, with the oldest loan being paid in the first place, unless the shareholder forgoes such a transfer for the initial payment. PandaTip: When developing this section, think about anything that would embarrass a shareholder if the action were taken without them speaking, perhaps in certain types of business transactions, attitudes or other important measures. CONSIDERING the shareholder who provides the loan to the company and the company that pre-arranges the loan to the shareholder, both parties agree to respect and respect the following commitments: the shareholder credit contract is essentially proof of a company`s debt to its shareholder. PandaTip: This model of shareholder agreements defines the conditions for shareholder interaction and what happens when one or more of them want to leave the company or something happens that forces the exit of a shareholder or the closure of the company. 6.1. Terms of credit.
A shareholder may issue a loan to the company with the agreement of all shareholders and only under the following conditions, unless otherwise agreed. [SHAREHOLDER CREDIT CONDITIONS]. Some things that are often used as collateral to secure credit are: yes. B a shareholder is an employee and is liable for a company salary, the parties could use a shareholder credit contract to describe the amounts owed.