Do I need shareholder approval to borrow?

2 min read

Directors' powerUsually enough

Check articlesThey set the limits

Big/unusualMay need a vote

Where the power to borrow sits

For most companies, the articles of association give directors the authority to borrow in the ordinary course of business. Routine working-capital finance rarely needs a separate shareholder vote.

When approval is needed

The articles or a shareholders' agreement may cap borrowing or require approval above a threshold, or for related-party lending such as a director's loan. Check both documents, and minute the decision to borrow.

What it means for you

Confirm your authority, then borrow with confidence.

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.

Frequently asked questions

Can I take a loan without telling shareholders?

For ordinary borrowing within the directors' powers, often yes, though good governance means keeping shareholders informed. Larger or unusual borrowing may require their approval under the articles.

Where do I check my borrowing powers?

In the company's articles of association and any shareholders' agreement. These set out what directors can do and any thresholds that require a vote. Minute the borrowing decision either way.