What is loan capital primarily represented by?

Loan capital is primarily represented by a debenture issued acknowledging indebtedness. This is because loan capital refers to the funds that a company raises through borrowing, typically through instruments like debentures, bonds, or loans. A debenture is a formal type of debt security that indicates the company is in debt to the debenture holder, outlining the terms of the loan, such as interest rates and repayment schedules. It serves as a way for the company to gain capital without giving away equity stakes in the business.

The other options relate to different types of agreements or documents that serve distinct purposes. A shareholders' agreement pertains to the rights and obligations of shareholders within a company and does not indicate borrowed funds. A shareholding document represents ownership in a company but does not involve debt. A contractual agreement with employees focuses on employment terms and conditions, which is unrelated to loan capital. Thus, the representation of loan capital through a debenture is the most accurate choice within this context.