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?

 

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Shareholders' resolution in

taxguru |

This might help

JAADAMS |
JAADAMS's picture