Directors’ Loan Accounts and Dividends: Everything You Need To Know
At DMC Recovery, we frequently handle cases involving directors' loan accounts and unlawful dividends. Let's delve into what these claims entail and how they're addressed in practice. Directors’ Responsibilities Directors are bound by duties outlined in the Companies Act 2006. They must act in good faith and prioritise the company's success. In cases of solvency, their duty lies with shareholders; in insolvency, creditors take precedence. As fiduciaries, directors manage the company's funds, akin to trustees, with obligations such as good faith and avoiding conflicts of interest. Directors’ Loan Accounts Overdrawn directors' loan accounts represent debts owed by directors to the [...]
