Document background
The Loan Agreement Shareholder To Company is a crucial document used when a shareholder provides debt financing to their company under Swiss law. This arrangement is common when companies need additional funding but prefer not to dilute ownership or seek external financing. The agreement must comply with Swiss corporate law requirements, particularly regarding capital maintenance rules and thin capitalization. It details essential terms including loan amount, interest rate (which must be at arm's length), repayment schedule, and any security arrangements. The document becomes especially important for tax purposes and in potential insolvency scenarios, where proper documentation of the shareholder loan is crucial for establishing creditor rights. This agreement type is particularly relevant in the Swiss context due to specific regulatory requirements and the country's strict corporate governance standards.
