Funds move between group companies and between the company and its directors as the business needs them. Entries are made in the accounts and nothing is documented.
Then tax questions arise about interest and deemed income, auditors qualify the treatment, and a buyer's diligence finds material balances with no terms, no repayment date and no supporting agreement.
Intercompany and Director Loan Documentation
Loan documentation for related party lending — the amount and drawdown, interest or the basis for none, repayment terms and demand rights, subordination where required, security if any, and the approvals the transaction requires.
Your Vision, Backed by the Right Legal Support
You build the business. We help you protect it.
Picture related party balances supported by agreements with terms, approvals recorded, and a position that survives audit and diligence.
Who this service is for
This Is For You If…
Groups lending between entities
Companies with director or shareholder loan balances
Businesses whose accounts show undocumented related party balances
Companies preparing for audit, diligence or a raise
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What we will do for you
This is what we will do for you
Document the loan terms including interest, repayment and demand rights
Advise on the approvals required for director and related party lending
Address subordination where a lender requires it
Support the accounting and tax treatment with proper documentation
What’s Included
What’s Included in our service for you
Loan agreement with terms and repayment provisions
Interest basis documented
Required approvals prepared and recorded
Subordination provisions where required
Documentation supporting audit and tax treatment
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Why Choose Legal That Works?
Why Choose Us To Assist You?
Digital-first
No office visit required—review and sign online
Transparent fees
Fixed price, no billing surprises
Deep experience
Various contracts across industries
Accessible
Our client portal keeps you informed
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We've Helped
You Need To Act Now
Important: Limited Slots
Undocumented related party balances are among the most common diligence findings, and among the easiest to have avoided.
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Nothing to Lose. Everything to Protect.
No Surprises. No Guesswork. Just Legal That Works.
Before anything starts, we speak with you to understand your business and make sure the service is the right fit. If it is not, we will say so upfront. No pressure. No wasted time. We only take on matters we are confident we can deliver with quality. That is why business owners trust us to get it right.
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Frequently Asked Questions
What is Legal That Works?
Legal That Works is a business and organisation oriented legal service designed by Messrs Akmal Saufi & Co (the firm that has brought the widely known legal consumer services brand ASCOLAW). We specifically help business owners and organisation leadership to navigate Malaysia’s legal terrain to achieve their commercial goal.
What if I’m not sure what legal service I need?
No problem. Most business owners aren’t legal experts! Just reach out. Our team will guide you to the right service or help you understand your options—without jargon or upselling.
Do intercompany loans need interest?
There can be tax consequences either way. We will flag them and recommend tax input where needed.
Are director loans restricted?
There are statutory restrictions and approval requirements. We will confirm what applies.
What is subordination?
An agreement that the related party loan ranks behind a bank facility. Lenders commonly require it.
Who will be helping me?
All our services are delivered by our licensed lawyers under the Malaysian Bar with proven experience across industries. You’ll work with a real legal team, not chatbots or generic customer support.
