This is a template director loan agreement. It can also be used as a template shareholder loan agreement. Th
Simple commercial loan Agreement between corporations (related or unrelated). This is drafted at in neutral form.
In Hong Kong, a loan can be given by an authorized money lender or a bank. Borrowing money from a financial institution which is not a bank is governed by the Money Lending Ordinance (MLO), whereas a bank loan is governed by the Code of Banking Practice (Code). Both regulations set out how money lenders … Read more
One of the main reasons people set up a private limited company is to limit their liability for business debt. The principle of separate legal entity of a company means that the right and liability of a company are separate from those of its directors. However, that does not mean that directors are free to … Read more
Although a shareholder is not generally held personally liable for the company’s debt, you should make sure you are aware of them so that you do not fall into a situation where this could happen. Limited liability of shareholders In Hong Kong, limited liability means when the shareholder’s liability is limited to a fixed amount, … Read more
In a transaction, a party (often the seller) may require some form of guarantee in case the other party fails to make payment or is a limited company and its creditworthiness is unknown. The party who provides the guarantee is the “guarantor”, also known as “surety” of the transactions. Hong Kong does not have a … Read more
Start-ups in Hong Kong can use debt financing to raise funds for their companies. Debt financing means when a company borrows money to be paid back at a later date. This is a good way for young businesses who want to raise funds and also maintain control over their company in Hong Kong. Debt financing … Read more
A Small Business Loan, also known as a SBA Loan, is a fixed amount of funding given to a small business in exchange for repayment of the loan principal amount plus interest. A Small Business Loan can be offered by a bank or a qualified money lender and can be used by small businesses for … Read more