Author(s): Maria Silvia Avi
It may make shareholder loans either a loan or a capital contribution. In the first case, the loans are standard, while in the second case, the shareholders' loans constitute reserves that must be recognised in the company's equity. Both loans and capital reserves are subject to rules that vary from country to country, but, in general, several principles distinguish each legislation. This article will focus our attention on these items to understand their differences and similarities.