by drawings I assume that you mean redistribution of profits by way of a dividend.
There are basically three ways that the director can take money from the company :
1) Salary
2) Dividends against profits
3) Removal of capital that they have introduced to the company
You will find that many companies have a directors loan account. It is exactly what it says on the tin, a loan account. If the account is overdrawn then the directors owe that money to the company. Normal way to clear it would be by way of a dividend to rebalance the books at the period end.
The main point is that you need to ensure that your directors do not think of the company as their personal piggy bank. Unfortunately way too many directors, espechially those who started out self employed find it difficult to get their head around the fact that even if they own all of the shares the company is a totally seperate legal entity.
HTH,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
just back from the office and been working my way through todays posts.
I saw the other thread which looked set to kick off and have decided best I keep away from that one as appreciate that when I get involved at times things can get a bit heated.
However, posting in this thread to avoid any reference to the other party, just want to offer my support in that you should have a right to state your mind and the other party should have a right to defend their position in open forum.
This very much links to another post that I just replied to in that people who have fallen foul of some less scruplious franchisors cannot warn others of the pitfalls of signing up as the contracts tie them in knots.
I saw this in Edinburgh over the Tram debarcle as well where the council slammed the contractors in public but the contractors were banned by their contract from publicly defended themselves... But won every case bar a couple behind closed doors.
Don't expect a reply to the above points considering the posts in the other thread but just wanted to voice my support for those willing to voice their opinions in public.
All the best matey,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
No need to worry Shaun. I spoke to the other party on the phone and I think we may after a long time have things resolved thus I have removed some posts. Also dont want you to need to get the big stick out to me. Feel free to delete this once read, oh for PM's.
Spent a good half hour constructing a response to the other thread but abandoned it, as I didn't want to draw Kris in, and did not want inflame the situation.
Basically offering my support to Kris, the role of customer services, and freedom of speech (in both directions).
Hopefully all resolved to an acceptable conclusion
Thanks for the pointer, Bill. I've cancelled my holiday in Tenerife to make the monthly payments :o) Fortunately, I'm difficult to 'gag' being fairly anonymous. As well as offering support, I did think the white highlighted post was pure spam.
-- Edited by Don Tax on Friday 14th of October 2011 06:38:51 PM
