Document background
The Share Loan Agreement is a specialized financial instrument used in the Austrian market for temporary transfer of shares between parties. This document is essential when shareholders or financial institutions wish to temporarily transfer shares while retaining the economic benefits of ownership. The agreement is structured to comply with Austrian financial regulations and corporate law, particularly the Aktiengesetz and Bankwesengesetz. It typically includes detailed provisions for the lending mechanism, collateral requirements, voting rights, dividend treatments, and return obligations. The Share Loan Agreement is commonly used for various purposes including settlement coverage, short selling facilitation, and market making activities. Its implementation requires careful consideration of Austrian securities regulations, tax implications, and corporate governance requirements.
