Document background
The Shareholder Loan Note is a fundamental financing instrument used when a shareholder provides debt funding to a company under Belgian law. This document is typically employed when a company requires additional capital but prefers debt financing over equity investment, or when traditional bank financing is not optimal. The agreement must comply with Belgian corporate law, particularly the Belgian Companies and Associations Code, and address specific requirements regarding interest rates, thin capitalization rules, and tax implications. The document includes essential provisions such as loan amount, interest calculations, repayment terms, events of default, and any security arrangements. It's particularly important in private companies where shareholders play an active role in financing operations, and must be structured to protect both the lender's interests and the company's financial stability while maintaining compliance with Belgian regulatory requirements.
