The Director's Loan Agreement is essential when a director either provides funding to or receives funding from their company in Hong Kong. This document is particularly important in situations where companies need additional working capital or when structuring executive compensation packages. The agreement must comply with Hong Kong Companies Ordinance requirements and should detail loan amount, interest rates, repayment terms, and any security arrangements. It's crucial for maintaining transparent corporate governance and protecting both parties' interests. The document should be carefully drafted to address tax implications, ensure proper board approval, and maintain compliance with regulatory requirements, particularly for listed companies. This agreement type is commonly used in both private and public companies across various sectors, requiring careful consideration of fiduciary duties and potential conflicts of interest.

1. Parties: Identifies the director (as lender or borrower) and the company, including their respective addresses and registration details

2. Background: Sets out the context of the loan agreement, relationship between the parties, and purpose of the loan

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. The Loan: Specifies the loan amount, purpose, and conditions precedent to drawdown

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

6. Repayment: Specifies repayment terms, schedule, and early repayment provisions

7. Representations and Warranties: Standard representations and warranties from both parties

8. Events of Default: Lists circumstances constituting default and consequences

9. Termination: Conditions and process for terminating the agreement

10. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law