Director/shareholder loan write-off
A client company has two shareholders and one director. The director holds 95% of the share capital and is the only active shareholder.
There is a loan to the director which the company now wishes to write off.
I am aware of the tax consequences but wonder if anyone can shed any light on the company secretarial and company law aspects. I asked a corporate lawyer contact of mine who rather strangely suggested he had never seen such a situation before!
Does the loan write-off require just a board meeting or should there be a shareholders' meeting also?