Director/shareholder loan write-off

Posted by Tax1976 PM | on Fri, 22/02/2013 - 11:50 560 2 comments | report

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?

Comments

There are 2 comments. Login or register to view them.

Shareholders' resolution in

taxguru | Fri, 22/02/2013 - 12:19

This might help

JAADAMS | Fri, 22/02/2013 - 12:50