Document background
A Directors Loan Agreement is essential when establishing formal lending arrangements between a company and its directors under Swiss law. This document becomes necessary either when a director is borrowing money from the company or lending money to it, ensuring compliance with Swiss corporate governance requirements and the Swiss Code of Obligations. The agreement helps prevent disputes by clearly documenting the loan terms, protects both parties' interests, and satisfies regulatory requirements for related-party transactions. It's particularly important for maintaining transparency, meeting tax compliance obligations, and establishing clear repayment terms. The document typically includes detailed provisions about interest rates, repayment schedules, security arrangements if any, and default consequences, all while ensuring alignment with Swiss banking and financial regulations.
