# SHAREHOLDER LOAN AGREEMENT
Date: 7 March 2035
Parties: Eleanor Hart and Quayside Lanterns Ltd
## 1. Purpose and parties
This shareholder loan agreement is made on 7 March 2035 between Eleanor Hart of 9 Vale View, Bristol BS7 8JP, and Quayside Lanterns Ltd, company number 13941026, of 27 King Street, Bristol BS1 4DZ. Eleanor is a shareholder and director; the company acts through a board resolution dated 5 March 2035 with her interest declared and not counted where required.
## 2. Facts, scope and terms
Eleanor will advance £48,000 to the company on 10 March 2035 by bank transfer. The company will use the money for stock and working capital, not for an unlawful distribution. The advance is a loan, not share capital, and does not increase Eleanor's voting rights or guarantee a dividend.
## 3. Process and responsibilities
Interest accrues at a fixed 6% per year on the outstanding principal, calculated daily on a 365-day basis and payable quarterly. If the full £48,000 remains outstanding for a 90-day quarter, the interest is £710.14 (48,000 × 0.06 × 90 ÷ 365), subject to the exact days and any repayment. No default interest is added.
## 4. Evidence, records and safeguards
The company will repay the principal in twelve monthly instalments of £4,000 on the last business day of each month from 31 March 2036 to 28 February 2037, with accrued interest paid at the same time. It may prepay without penalty. Payments are subject to the company's solvency and directors' duties, but a decision not to pay is not silently treated as a waiver.
## 5. Review, escalation and outcome
The loan is unsecured and ranks behind external creditors in an insolvency to the extent required by law; Eleanor receives no preferential treatment merely because she is a shareholder. The company will keep a loan ledger, send quarterly statements and record transactions accurately. Any tax reporting or benefit-in-kind question will be considered separately on current facts.
## 6. Reservations and practical protections
The company may demand repayment only after a material breach, including misuse of funds or an overdue amount not cured within 10 business days' notice. Eleanor may demand repayment after an uncured material breach or if the company enters insolvency proceedings, subject to insolvency law. A variation must be in writing and approved with conflicts properly handled.
## 7. England and Wales law and completion
This completed fictional agreement is governed by England and Wales law and records a commercial company loan, not personal financial advice. It does not authorise an unlawful financial assistance transaction or guarantee recovery. Notices go to the stated addresses, and both parties should retain the resolution, transfer confirmation and repayment records.