Advisory

Introduction

Director loans are commonplace in SME companies, and more usually refer to the loans extended to a company to carry out its endeavours. The director loans to which this article relates and to which the cited legislation applies, are loans drawn down from the company, that is outside of the salaried payments which are processed through payroll and taxation.

In July 2023 the CRO re-commenced enforcement proceedings issuing 10 week warning notices to companies which are not up to date with their Annual Returns.

Whereas CVLs (creditors voluntary liquidation) deal with insolvent companies, MVL (members voluntary liquidation) winding ups are in relation to the winding up of solvent companies. Some of the regular queries we receive are as follows: