Document background
The Founder Loan Agreement is utilized when a company in the UAE extends a loan to one of its founders, requiring careful documentation to ensure legal compliance and protect both parties' interests. This arrangement must comply with UAE Companies Law, particularly regarding related party transactions and corporate governance requirements. The document typically includes comprehensive terms covering loan amount, repayment schedule, interest/profit calculations (with consideration for Sharia principles if applicable), and default provisions. It's essential to structure these agreements properly to maintain transparency and meet regulatory requirements while facilitating the financial arrangement between the founder and the company.
