The Director's Loans - The Company is Insolvent?

This is often overlooked by directors and they do not realise the liability they are creating.

As many as three quarters of UK directors have borrowed money from their company. Professional advice should be obtained as soon as possible.

If a company is insolvent and the loan account is outstanding, the appointed liquidator or CVA supervisor will look to recover the debt for the benefit of the creditors.

This means that they will seek to recover the Loans from the Directors and you will owe the money personally.

Remember, company funds are NOT personal funds.

You may be asked to repay the loans in full.

If your company is insolvent, dividends must not be taken from the company accounts as this will worsen the current overdrawn director’s loan account. You will be personally liable.

Are you faced with potential insolvency?

Is the Company in financial distress?

Are the Creditors mounting?

If you are experiencing any of these live issues, then contact us NOW to work out a solution.