Document background
The Shareholder Loan Promissory Note is a crucial document in Austrian corporate financing, typically used when a company requires additional funding and shareholders are willing to provide it through a formal loan structure. This document type is particularly important in the Austrian legal context as it must comply with specific requirements under the ABGB, UGB, and EKEG, especially regarding equity replacement rules and arms-length principles. The document captures essential loan terms including amount, interest, repayment schedule, and any security arrangements, while also addressing specific shareholder-company relationship aspects. It's commonly used in various scenarios including growth financing, working capital needs, or specific project funding, and provides both parties with clear documentation of their rights and obligations under Austrian law.
