Document background
The Shareholder Promissory Note is commonly used in Hong Kong when a company needs to formalize a financial obligation to one of its shareholders. This scenario often arises in situations such as deferred purchase price for shares, dividend payments, or shareholder loans being formalized. The document must comply with Hong Kong's Bills of Exchange Ordinance and Companies Ordinance, while also considering securities regulations and stamp duty requirements. It typically includes specific terms about payment obligations, interest, security (if any), and events of default. The Shareholder Promissory Note serves as a legally binding instrument that balances the company's need to manage its financial obligations with the shareholder's right to receive payment, all within the framework of Hong Kong's legal system.
