Document background
The Shareholder Loan Promissory Note is commonly used in Hong Kong when shareholders provide debt financing to their companies, particularly in situations where external financing may be less favorable or unavailable. This document serves as formal evidence of the debt obligation and protects both the shareholder-lender's interests and the company's governance requirements. It must comply with Hong Kong's regulatory framework, particularly the Bills of Exchange Ordinance (Cap. 19) and Companies Ordinance (Cap. 622). The document typically includes essential terms such as loan amount, interest rate, repayment schedule, and default provisions, while also allowing for optional features like security arrangements or conversion rights. It's particularly useful for companies seeking efficient internal financing solutions while maintaining proper documentation and legal compliance.
