Funds introduced by company secretary...

Funds introduced by company secretary...

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Dear All,

Please consider the scenario below. I would greatly appreciate any kind of feedback - I have a rough idea of the solution but would like to get confirmation from more experienced users on this forum.

The company secretary for one of the companies we are dealing with paid £10,000 into the company's bank account as a loan given to the company. I know it's a basic question but would this be classified under capital introduced or would it go into director's loan account...I would put it under director's loan account but there's never any clear cut answers, thanks in advance

kind regards,

Replies (5)

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By WhichTyler
30th Nov 2013 13:12

Pourquoi?

If they are just co. sec. they are not a director. So not a director's loan. Of course they may well be a director, or a shareholder, as well as co.sec. but its not automatic. They are a related party though...

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By andy.partridge
30th Nov 2013 13:16

It's a loan

You've said so yourself. But as WhichTyler says it is not a 'director's loan' unless they are also a director. It is not 'capital introduced'.

Thanks (1)
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By a_hussain773
30th Nov 2013 15:53

Ok.

So in this instance, it is not a director's loan just a normal loan that the company owes back to the company secretary, so depending on the term it will go under either current or long term liabilities. Correct?

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By zebaa
30th Nov 2013 19:34

But then...

...if he were a director it will go under either current or long term liabilities anyway, with just a mention as a note. Perhaps I'm dumb, but what's the problem?

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Replying to GlobalTax:
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By a_hussain773
09th Dec 2013 09:45

No it's fine, I actually looked at the scenario again and realised that i answered my own question whilst writing it out !! was just one of those days where i couldn't focus actually.... no worries, thanks to all who contributed

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