Director Loan To Company Agreement Template for Belgium

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Key Requirements PROMPT example:

Director Loan To Company Agreement

"I need a Director Loan To Company Agreement for a €500,000 unsecured loan from me to my Belgian technology startup, with quarterly interest payments at 3% per annum and full repayment due by March 2025."

Document background
The Director Loan To Company Agreement is a crucial document used when a company director provides financial support to their company through a formal loan arrangement. This agreement, governed by Belgian law, is particularly important for companies seeking alternative financing options or requiring quick access to capital. The document must comply with the Belgian Companies and Associations Code, particularly regarding director transactions and conflicts of interest. It typically includes detailed terms about the loan amount, interest rates, repayment schedule, and any security arrangements. Special attention is paid to corporate governance requirements, tax implications, and financial regulations specific to Belgium. The agreement serves to protect both the director's interests as a lender and the company's interests as a borrower while maintaining transparency and regulatory compliance.
Suggested Sections

1. Parties: Identification of the Director as lender and the Company as borrower, including full legal names, addresses, and registration details

2. Background: Context of the loan, including the company's need for funding and the director's capacity to provide it

3. Definitions: Definitions of key terms used throughout the agreement

4. Loan Amount and Purpose: Specification of the loan amount, currency, and intended use of funds

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

6. Repayment Terms: Schedule and method of repayment, including any early repayment provisions

7. Conditions Precedent: Conditions that must be satisfied before the loan becomes effective

8. Representations and Warranties: Standard declarations by both parties regarding their capacity and authority to enter into the agreement

9. Corporate Approval: Confirmation of necessary corporate approvals and compliance with Belgian Companies Code requirements

10. Events of Default: Circumstances that would constitute a default and the consequences thereof

11. Governing Law and Jurisdiction: Specification of Belgian law as governing law and jurisdiction for disputes

Optional Sections

1. Security: Details of any security or collateral provided for the loan, required when the loan is secured

2. Subordination: Provisions regarding the ranking of the loan in relation to other company debts, needed when there are other creditors

3. Tax Provisions: Specific tax-related clauses, particularly relevant for large loans or when tax optimization is required

4. Interest Rate Adjustment: Mechanisms for adjusting interest rates, needed when variable rates are used

5. Board Approval Process: Detailed procedures for board approval, required for larger loans or when specifically mandated by company articles

6. Conversion Rights: Provisions for converting the loan to equity, included when conversion rights are part of the agreement

Suggested Schedules

1. Repayment Schedule: Detailed schedule of repayment dates and amounts

2. Corporate Authorizations: Copies of relevant board resolutions and corporate approvals

3. Calculation of Interest: Detailed methodology for interest calculation and examples

4. Conflicts of Interest Declaration: Required declaration under Belgian Companies Code regarding director's conflict of interest

5. Previous Loans Statement: Statement of any existing loans between the director and the company

Authors

Alex Denne

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

Relevant Industries

Financial Services

Professional Services

Technology

Manufacturing

Retail

Healthcare

Real Estate

Construction

Energy

Telecommunications

Transportation

Media and Entertainment

Agriculture

Mining and Resources

Relevant Teams

Legal

Finance

Corporate Secretariat

Treasury

Tax

Compliance

Risk Management

Corporate Governance

Board Secretariat

Relevant Roles

Director

Managing Director

Chief Executive Officer

Chief Financial Officer

Financial Controller

Company Secretary

Legal Counsel

Corporate Lawyer

Finance Manager

Treasury Manager

Board Member

Compliance Officer

Tax Director

Risk Manager

Corporate Governance Officer

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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