Shareholder Loans in Luxembourg Wealth Structures: Legal Mechanics, Documentation, and Credit Governance
A shareholder loan is, at its core, a contractual debt obligation. When a shareholder advances money to a Luxembourg company and the company undertakes to repay it, the legal starting point is Article 1892 of the Luxembourg Civil Code, which governs the prêt de consommation — the simple loan. The rule is precise: the borrower…