What Is a Shareholder Loan?

Shareholder loans refer to loans in the name of companies.

Shareholder loan

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Shareholder loans refer to loans in the name of companies.

Shareholder loans: Except as required by law, the company may not become an investor who is jointly and severally liable for the debts of the invested enterprise. The company invests in other enterprises or provides guarantees for others, which is determined by the board of directors or the shareholders 'meeting or shareholders' meeting in accordance with the provisions of the company's articles of association. Limit. Where the company provides guarantees to the company's shareholders or actual controllers, it must be subject to resolution by the shareholders 'meeting or shareholders' meeting. The shareholders specified in the preceding paragraph or shareholders controlled by the actual controller specified in the preceding paragraph shall not participate in voting on the matters specified in the preceding paragraph. The voting was passed by more than half of the voting rights held by other shareholders present at the meeting. Company shareholders shall abide by laws, administrative regulations and articles of association, exercise shareholder rights in accordance with the law, and shall not abuse shareholder rights to damage the interests of the company or other shareholders; they shall not abuse the independent status of the company's legal person and the limited liability of shareholders to damage the interests of company creditors.

Because the capital increase needs to be proposed by the board of directors, the shareholders' meeting voted to pass. After the funds are raised, the capital verification shall be re-performed and the business registration shall be changed. Loans to shareholders only need to sign relevant contracts, and the loans are short in terms of procedures and time.