Taking Funds From A Directors Loan Account

[sooty]

If a small business is just about to go into administration, and the director has money in the directors loan account, how can he get it out without the administrators requesting it back. I have been told that if a written loan statment was in place with a pay back by a set date, the administrators canot touch it. Is this correct ?

 

[Petra]

If the money was withdrawn from the business at a time when the cashflow of the business could not support it then you could be asked by the administrator for immediate repayment.

If it can be shown that withdrawl of this money precipitated the admin they could also seek damages over and above the repayment.


Be very careful.