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?
- Failure to operate PAYE 35 1
- New Practice - Accounting Software 3,133 85
- Where can I get the information for this 376 7
- BrightPay 372 9
- If a company made large profits in 2009, is there a time limit for later losses to be set off against those profits to recover tax? 216 3
- CGT &LLP 84 2
- Am I at risk as an appointed Agent? 549 4
- Setting up an offshore company 118 1
- SDLT on Land Transfer to Connected Company and Averaging Relief 187 16
- Secure document exchange 140 3
- Question for FreeAgent users 163 4
- Any way of declaring a variable dividend? 396 7
- break even point 183 5
- Charity recouping VAT via a separate company 119 3
- Fax to email providers 327 11
- Payroll software 260 11
- Ghost messages from HMRC...... 152 1
- Amending supplier account code in Sage 50 145 4
- How to issue shares to investors 101 1
- Expense management software 634 12