Document background
The Directors Loan Agreement is used when a company wishes to extend a loan to one of its directors in Denmark. This arrangement must comply with Danish corporate law, particularly the Danish Companies Act (Selskabsloven), which permits such loans subject to specific conditions. The document is essential for establishing clear terms of the lending arrangement, including interest rates, repayment schedules, and any security provisions. It should be used whenever a director requires a loan from the company, whether for personal or business purposes, and must include provisions that ensure compliance with Danish tax regulations and financial reporting requirements. The agreement helps protect both the company's interests and ensures transparency in related-party transactions.
