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A cafe owner wishes to sell his business, which is operated by his limited company. As director, he is still owed £18,000 from monies previously loaned to the company
A cafe owner wants to sell his business. He runs a successful licensed cafe from leased premises with the help of two full-time staff and a couple of part-time “casual” employees. He started the business in May 2005 by setting up a company of which he is the sole director and shareholder. To set things up he loaned the company £30 000 in addition to the issued share capital of £100.
In November 2013 the lease on the cafe premises was extended for a further five years. The company does not owe any money apart from the director’s loan which currently has an outstanding balance of £18 000. My client is aged over 70 and he would like to retire.
He has asked about the director’s loan account and how this might be repaid to him. He is contemplating offering his shares to a prospective purchaser...
