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Director Loan To Company Agreement for Ireland

Director Loan To Company Agreement Template for Ireland

A comprehensive legal agreement governed by Irish law that formalizes a loan arrangement between a company director and their company. The agreement details the loan amount, interest terms, repayment schedule, and any security arrangements while ensuring compliance with Irish company law requirements, particularly the Companies Act 2014. It includes provisions for default, representations and warranties, and addresses tax implications of the arrangement. The document serves to protect both the director's interests as a lender and maintain proper corporate governance standards.

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Director Loan To Company Agreement

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What is a Director Loan To Company Agreement?

The Director Loan To Company Agreement is a crucial document used when a director provides financial support to their company through a formal loan arrangement in Ireland. This agreement is particularly relevant for companies seeking alternative financing options or requiring short-term funding solutions. It must comply with Irish company law, particularly the Companies Act 2014, and include specific provisions regarding interest rates, repayment terms, and security arrangements if applicable. The document serves multiple purposes: it protects the director's interests as a lender, ensures proper corporate governance, maintains transparency for shareholders and other stakeholders, and provides clear documentation for tax and accounting purposes. The agreement should be properly executed and recorded in the company's registers, with appropriate board approvals in place.

What sections should be included in a Director Loan To Company Agreement?

1. Parties: Identifies the director providing the loan and the company receiving it, including registration numbers and addresses

2. Background: Sets out the context of the loan, the director's relationship with the company, and the purpose of the loan

3. Definitions: Defines key terms used throughout the agreement

4. Loan Amount and Purpose: Specifies the exact amount being lent and its intended use by the company

5. Interest: Details the interest rate, calculation method, and payment frequency

6. Repayment Terms: Specifies when and how the loan will be repaid, including any installment arrangements

7. Company's Representations and Warranties: Company's confirmations about its status and authority to enter into the loan

8. Director's Representations and Warranties: Director's confirmations about their authority and ownership of loan funds

9. Events of Default: Circumstances that would trigger immediate repayment or other remedies

10. Notices: How formal communications between parties should be made

11. Governing Law and Jurisdiction: Confirms Irish law governs the agreement and Irish courts have jurisdiction

What sections are optional to include in a Director Loan To Company Agreement?

1. Security: Include when the loan is secured against company assets

2. Subordination: Include when the loan needs to be subordinated to other company debts

3. Company Covenants: Include when specific ongoing company obligations are required

4. Early Repayment: Include when there are specific provisions for early repayment

5. Multiple Directors: Include when multiple directors are providing the loan

6. Tax Provisions: Include when specific tax treatments need to be documented

7. Assignment: Include when either party needs the right to assign the loan

What schedules should be included in a Director Loan To Company Agreement?

1. Loan Details: Detailed breakdown of the loan amount, interest calculations, and repayment schedule

2. Security Details: If applicable, details of any assets provided as security

3. Company Board Resolution: Copy of the board resolution approving the loan

4. Repayment Schedule: If installment payments, detailed schedule of payment dates and amounts

5. Existing Charges: List of existing charges or security over company assets

6. Related Party Transactions: Details of other loans or financial arrangements between the director and company

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Ireland

Publisher

Ƶ

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions



























Clauses


























Relevant Industries

Financial Services

Technology

Manufacturing

Retail

Professional Services

Construction

Healthcare

Real Estate

Hospitality

E-commerce

Software Development

Consulting

Media and Entertainment

Relevant Teams

Legal

Finance

Corporate Governance

Board of Directors

Treasury

Tax

Compliance

Company Secretariat

Risk Management

Corporate Affairs

Relevant Roles

Director

Company Secretary

Chief Financial Officer

Financial Controller

Corporate Lawyer

Legal Counsel

Company Director

Finance Director

Managing Director

Compliance Officer

Tax Director

Board Member

Corporate Governance Officer

Treasury Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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