Claiming housing benefit when owning a company

 I was speaking to a potential client yesterday and looking at their company accounts. It is a couple of years old with losses in those years but is now making a profit. There is a loan to owing to the director and as well as taking a below personal allowance salary he ha been drawing down on this.

I was quite surprised; however, when the client said he had been claiming housing benefit. I didn't think you could claim any benefits, particularly when you ran your own company. Apparently he had given all his company and personal information when they approved.

Has anyone else had this scenario or seen clients that claim other benefits

He is also claiming tax credits.