Can major shareholders subscribe for private equity and get loans?
When a major shareholder subscribes for private placement of shares, it can subscribe for shares with loans, but certain conditions must be met. First of all, the major shareholder must have sufficient financial resources and financial strength to pay the principal and interest of the loan. Secondly, major shareholders need to provide guarantees to banks so that banks can get adequate protection. Finally, major shareholders need to provide reasonable use of loans and repayment ability of loans according to the requirements of banks.
Banks that can use shareholder loans
China Industrial and Commercial Bank loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them. Simply put, it is borrowing money with interest. Shareholders can borrow money from ICBC for three months, as long as they repay it in time.
Can the major shareholder of the company borrow money?
For corporate loans, shareholder loans are ok, but the relevant situation needs to be handled by the company at a shareholders' meeting, because corporate loans are important decisions and the relevant situation needs to be handled legally within the scope permitted by law.
Legal basis:
In Article 37 of the Company Law of People's Republic of China (PRC), the shareholders' meeting shall exercise the following functions and powers:
(1) To decide on the company's business policy and investment plan;
(2) Electing and replacing directors and supervisors who are not employee representatives, and deciding on the remuneration of directors and supervisors;
(3) Examining and approving the report of the board of directors;
(4) Examining and approving the reports of the board of supervisors or supervisors;
(5) To examine and approve the annual financial budget plan and final accounts plan of the company;
(VI) To examine and approve the company's profit distribution plan and loss recovery plan;
(7) To make resolutions on the increase or decrease of the registered capital of the company;
(8) To make resolutions on the issuance of corporate bonds.
(9) To make resolutions on the merger, division, dissolution, liquidation or change of corporate form of the company;
(10) Amending the Articles of Association.
(eleven) other functions and powers stipulated in the articles of association.
Where the shareholders unanimously agree to the matters listed in the preceding paragraph in writing, they may make a decision directly without convening a general meeting of shareholders, and all shareholders shall sign and seal the decision document.
Can company shareholders operate loans?
Of course. Requirements for business loans: the applicant is an enterprise legal person or the largest shareholder, with full capacity for civil conduct, and the shareholders of the company meet the requirements, so the shareholders of the company can operate loans. Operating loans are loans for business purposes issued by banks to individual industrial and commercial households or small and micro enterprises.
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