Document background
The Director Loan To Company Agreement is a crucial document used when a company requires financing and opts to obtain it from one of its directors rather than external sources. This arrangement is common in Philippine corporations, particularly in situations where traditional financing may be less accessible or less favorable. The agreement must comply with Philippine corporate law, particularly the Revised Corporation Code, and financial regulations. It typically includes detailed terms about the loan amount, interest rates (compliant with usury laws), repayment schedule, any security provided, and the circumstances constituting default. The document should be approved by the board of directors and properly documented to ensure transparency and compliance with corporate governance requirements. This type of financing arrangement requires careful consideration of potential conflicts of interest and proper disclosure requirements.
