Document background
A Simple Shareholder Loan Agreement is commonly used when a shareholder wishes to provide additional funding to a company through debt rather than equity. This document type is particularly relevant in the Qatar business environment, where companies often rely on shareholder financing for growth or working capital needs. The agreement must comply with Qatar's Commercial Companies Law No. 11 of 2015 and other relevant regulations, including potential Islamic finance requirements. It typically includes detailed terms about the loan amount, purpose, repayment schedule, and any applicable interest or profit-sharing arrangements. Such agreements are particularly useful for smaller or medium-sized companies where traditional bank financing may be less accessible or desirable. The Simple Shareholder Loan Agreement provides a clear legal framework for the lending relationship while protecting both the shareholder's interests as a lender and the company's obligations as a borrower.
