A partnership converted to a CIC with the partnership assets being transferred into the CIC creating a directors loan liability on the balance sheet.
The CIC is asset locked but does this prevent the directors loan being paid off? Otherwise if not, the liability surely not a liability. Was this the correct accounting treatment at the time of transfer? Should it have been paid off gradually like a standard directors loan?
A director of the CIC whose loan it was has passed away; they were working in the business until their death. My inclination is that it’s payable to the estate. Has anyone else had experience of this?