Business news and opinion from Evans Weir > Tag: Directors

It is not uncommon for a director to loan a company money to assist with growth, asset purchases or cash flow matters. But loans into and out of the company accounts to a Director need careful management.

It may not be a question that you thought you’d have to ask yourself, but as a Director, part of your legal undertaking requires you to ensure that the business remains solvent and trades within its means. Operating outside of these boundaries could see the company being declared insolvent, struck off and you, as a Director, being penalised or disqualified – meaning you cannot be a Director again.

Company directors considering an insolvency process need to be aware of recently introduced legislation, contained within the Finance Act 2020. The new law has been designed to combat the use of insolvency as a means of avoiding tax liabilities.