Document background
A Loan Agreement Between Director And Company is a critical document used when a director provides financial support to their company through a formal loan arrangement. This agreement is particularly relevant in the Canadian business context where companies seek alternative financing options or require bridge funding. The document must comply with Canadian federal and provincial corporate laws, tax regulations, and securities requirements if applicable. It typically includes detailed terms about the loan amount, interest rate (considering Criminal Code interest rate limitations), repayment schedule, and any security arrangements. The agreement should reflect board approval and proper corporate governance procedures, while addressing potential conflicts of interest and ensuring fair terms for both parties. This type of agreement is commonly used in both private and public companies, though public companies may face additional disclosure requirements under securities laws.
