Directors loan

Directors loan

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Co set up a few year ago with loans from directors and £2 share capital. Made losses of late and has negative reserves as it has never managed to make enough money to repay the substantial initial (£70k approx) loans. Co now ceased to trade and wishes to be struck off Co Hse register.
I have read the consderable postings already on this site, together with relevant legislation and other articles, and am OK that company can be struck off with negative reserves without formal insolvency as director/shareholder is only outstanding creditor.
Would be grateful for any comments on the following though:
if the director waives entitlement to loan outstanding, can it be partial with balance left?....because if he waives whole loan balance, there are insufficient CT losses bfwd to cover whole "profit" from waiver in P/L account, and he doesn't want CT liability given state of company!. He also unhappy to striek of with large -ve assets.
Also, when the co was set up money was loaned to director by family for setting up company, which did happen. Immediate evidence is letter accompanying cheque. Can the family members claim under S253TCGA92 or is the link too tenuous?
Thanks SJ
SJ

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By kenmoody
21st Sep 2007 14:54

I don't see why ...
... the debt may not be partially released, though equally I can't see what the problem is if the director is the only creditor.

The loan is between the company and the director is it not - I assume it is shown as such in the company's books. Therefore the director may make a s253 claim but the family members may not if they have loaned the money to the director personally rather than the company, as that would not qualify as a loan to a trader.

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