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Shareholders Current Account

How do I justify to a bank a big deposit from the current account I have with my company?

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Our company usually distributes dividends but then keeps them in Shareholders Current Account within the company (so basically loaned back to the company for working capital). The dividends are never deposited into our personal bank accounts - as shareholders we deduct our daily/monthly/yearly personal expenses as we go along.

I now need a significant amount of money for personal reasons and need to have it wired into a new bank account - the bank is asking for justification - what kind of letter/document can I issue that shows that this money is actually mine and the company is paying it back to me?

Thanks.

Replies (6)

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By johngroganjga
14th Oct 2020 09:02

You need to ask the bank what they want confirmation of.

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By bernard michael
14th Oct 2020 09:06

Perhaps a copy of the board minute declaring the dividends might help

Thanks (2)
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By Calculatorboy
14th Oct 2020 09:23

Its a simple repayment of a directors loan ,it will be in your balance sheet.

I always advise physically transfer the dividend , you can always loan back

and dont intermingle personal expenses with company , its messy and not good practice

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By Calculatorboy
14th Oct 2020 09:23

Its a simple repayment of a directors loan ,it will be in your balance sheet.

I always advise physically transfer the dividend , you can always loan back

and dont intermingle personal expenses with company , its messy and not good practice

Thanks (0)
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By Justin Bryant
14th Oct 2020 09:38

It may be quicker & simpler to go onto Gumtree & get advice from a BBL fraudster. They can get banks to transfer them £billions without any difficulty it seems.
https://www.accountingweb.co.uk/tax/hmrc-policy/bounce-back-loan-scheme-...

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Hallerud at Easter
By DJKL
14th Oct 2020 09:47

A copy of the last company accounts which detail the loans from directors (if you are such) and your name as a director (if you are such) might suffice.

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