23 May 2007
Ten years ago, a sole director advanced a loan of £200,000 to his 100% controlled one man trading company to enable the trade to continue and survive.
The company's annual figures are turnover, £60,000; pre-tax profit, £8,000; and director's remuneration, £nil.
The balance sheet has always shown an excess of liabilities over assets and that the director resolves to continue to support the company by not withdrawing his unsecured interest-free loan to the company.
The loan is now all but repaid by the company to the director, who is now of pensionable age.
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