“Directors Loan Accounts” by Elliot Green, tax and insolvency specialist and founder and CEO of Oliver Elliot

Can a director negotiate repayment of an overdrawn loan account with a liquidator? Elliot Green explains all.

This article is about the perennial problem of directors of owner-managed businesses who may extract company money, and are then faced with the dilemma of struggling to repay an overdrawn Director’s Loan Account.

It would be perfectly possible to construct an article to address the rubric with the answers: no, yes or it depends. However, conceivably the correct answer is that a director can negotiate the repayment of their overdrawn loan account with a liquidator, but that it is a matter that will often be influenced by the facts of the case.

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