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CREDITOR-DEBTOR RELATIONSHIP - Debt - What constitutes - Loans

Wednesday, September 20, 2017 @ 8:40 AM  

Appeal by the plaintiff from dismissal of his action for repayment of cash advances made to the respondent company. The respondent argued that the funds were capital investments rather than shareholder loans. The appellant was one of three founding shareholders of the company. The shareholders’ agreement (Agreement) was drafted by the appellant without legal assistance. The Agreement provided that no shareholder loans would be required. Instead, the company would make cash calls. After having made several advances to the company, the shareholders decided to treat the...