Does a Director Loan account have to be repaid? | AccountingWEB

Does a Director Loan account have to be repaid?

Hello

Have a situation where company ran by 2 brothers as Directors. One passed away last year and now the Directors loan balance has been called in by the Solicitors

dealing with the death etc.   The Director loan account consists of Accountants opening balances from 12 years ago when the company became Ltd, some purchase costs of a Directors home, some dividends etc, overall balance 250k.    Director remaining cannot afford to do this yet the Accountants and the Solicitors are demanding this.

Does this Dir loan balance have to be repaid or can it be repaid as and when the Director chooses?

 

Many thanks 

Comments
There is 1 comment. Login or register to view it.

Agreement

occca |