Free Shareholder Agreement

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Capital Requirements of the Corporation

Frequently Asked Questions
What is the difference between a shareholder loan and a purchase of Shares?When a shareholder purchases shares, the shareholder increases their equity in the company.

When a shareholder makes a Shareholder Loan to the company, it is a personal debt owed to the shareholder by the company, as though both were private individuals. That debt must be repaid, but it does not increase the shareholder's equity in the company.

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