Document background
A Shareholder Loan Agreement is utilized when a company requires additional financing and opts to obtain it from its existing shareholders rather than external sources. This document is particularly relevant in the Austrian business context, where specific legal considerations such as the Equity Substitution Act (EKEG) and capital maintenance rules must be observed. The agreement sets out the complete framework for the loan, including amount, interest, repayment terms, and any security arrangements. It's commonly used in both startup funding scenarios and established business operations when traditional bank financing may be less desirable or unavailable. The document must comply with Austrian corporate law requirements and carefully consider tax implications, particularly regarding thin capitalization rules and transfer pricing aspects.
