Looking at a cessation of trade and closure of company. If a company is solvent except for outstanding directors loans creditors is it acceptable to cease trade and move to a DS01 strike off, even if the director's loans remain unpaid on strike off? ie. can the directors' loans be treated as not falling due (they are unsecured and the directors choose not to call them in, or agree between them who will recover what is left) to avoid the technical definition of insolvency and therefore avoid the obligation and cost of appointing an insolvency practitioner under a CVL?
If such is true the DLA creditors will need removing prior to strike off as otherwise Strike Off cannot happen. Is converting to equity the best way to do this and OK just pre dissolution? If the DLA is not converted to equity but written back to P&L there will be a gain which is taxable to CT. However in that circumstance can the director claim a capital loss on the loan? Will he lose the opportunity to claim a tax loss if the DLA is coverted to equity, essentially at nil market value just pre dissolution?