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My friend Steve, as his mates call him, has just got a new job in a well known company. He has come into the business at a time when they are being called failures. However he thinks the company has been given a dud loan.
Can I ask members of the forum to check the terms of this loan to see if it is fair?
Loan Agreement: £20 billion and 57% stake in the company(dragons' den quality IMHO).
He can effectively ask his friends to buy shares in the company so that the final amount goes down to £5 billion.
Interest Rate: 12% for the entirety of the loan.
Potentially unfair clauses: He cannot pay himself any cash bonus and with his moderately small salary reputed to be over £500,000 it will have a huge effect on his living arrangements.
Furthermore, his friends cannot get any dividends from the shares until he pays back the loan(Is that an unfair term??)
Already, he is quite fearful for the business because shares in his company have dropped like a bad smell and so he fears that the government might own a majority steak.
This is hugely embarrassing for him but do you think he should ask the government for a copy of the loan agreement?
Do you think the CPUT regulations apply?
I don't think there was any PPI but the government did use the words "fully protected" when it was sold to him.
I said to him that I was sure the people at Legal Beagles would be able to help. Advice please and I will email him your responses as he is tied up sorting out his new office
For those of you who would like to know who Steve is, please read this article in his local newspaper: FT.com / Home UK / UK - New chief at RBS
Can I ask members of the forum to check the terms of this loan to see if it is fair?
Loan Agreement: £20 billion and 57% stake in the company(dragons' den quality IMHO).
He can effectively ask his friends to buy shares in the company so that the final amount goes down to £5 billion.
Interest Rate: 12% for the entirety of the loan.
Potentially unfair clauses: He cannot pay himself any cash bonus and with his moderately small salary reputed to be over £500,000 it will have a huge effect on his living arrangements.
Furthermore, his friends cannot get any dividends from the shares until he pays back the loan(Is that an unfair term??)
Already, he is quite fearful for the business because shares in his company have dropped like a bad smell and so he fears that the government might own a majority steak.
This is hugely embarrassing for him but do you think he should ask the government for a copy of the loan agreement?
Do you think the CPUT regulations apply?
I don't think there was any PPI but the government did use the words "fully protected" when it was sold to him.
I said to him that I was sure the people at Legal Beagles would be able to help. Advice please and I will email him your responses as he is tied up sorting out his new office
For those of you who would like to know who Steve is, please read this article in his local newspaper: FT.com / Home UK / UK - New chief at RBS
msl: I'll bring the 
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