i have a ltd company client with 2 directors. One Director has always been inactive and no involvement with the day to day running of the company and leaves it up to director 1.
During the year the director running it has set up a new company and has transacted with the company. Invoices raised and paid - deemed to be at arms length. The reason for the new company set up was that although providing similar services, it is providing a specialised type of service.
now we are coming to the year end, the director who doesn't get involved is now disputing this - that he wasn't aware etc and the accounts work is going to come to a stand still.
i feel the related party transactions are at arms length and the director set up the new company as it is a specialised area and the other director/shareholder has had no involevement in the company at all.
The other director is also not happy he was not consulted re the director salary and provision of company car (which is not actually excessive at all)
any suggestions as to what I can do with this to love things along? All related party transactions disclosed etc.