Document background
The Loan Agreement Shareholder To Company is essential when a company requires additional funding and opts to obtain it from existing shareholders rather than external financial institutions. This arrangement is common in Malaysian business practice, particularly for small to medium-sized enterprises or during growth phases where traditional financing may be less accessible or desirable. The agreement must comply with Malaysian corporate law, particularly the Companies Act 2016, and should address key elements including loan terms, interest rates, repayment schedules, and any security arrangements. It's particularly useful for companies maintaining control over their debt while leveraging shareholder resources, though careful consideration must be given to corporate governance and potential impacts on shareholder relationships.
