Document background
The Shareholder Loan Agreement Template is designed for use in the United Arab Emirates when a shareholder wishes to provide financial support to their company through a formal loan arrangement. This document is essential in the UAE business context where shareholder financing is a common alternative to traditional bank funding, particularly for growing companies or those requiring additional working capital. The template ensures compliance with UAE Federal Law No. 32 of 2021 on Commercial Companies, the UAE Civil Code, and Sharia principles regarding financial transactions. It includes comprehensive provisions for loan terms, security arrangements, repayment schedules, and default scenarios, while maintaining flexibility to accommodate various business sizes and sectors. The agreement is particularly relevant in situations where companies seek to maintain control over their financing while establishing clear legal obligations and protections for all parties involved.
