Convertible Loan Agreement

You may set up a company with friends or family and think that this document is unnecessary. However, if parties fall out or if there are disagreements in the future, there will be huge repercussions and you may lose your entire investments in the company. This document will act as a safeguard and is highly recommended as it sets up roles and responsibilities among shareholders. It also sets out each parties’ rights and obligations. This can be beneficial to both minority or majority shareholders. This will usually be required after parties had entered into a share sale and purchase agreement and/or a shares subscription agreement.