Cash withdrawal by director
This query is : Resolved
12 May 2015
Dear sir,
if there is any limit for withdrawal by director in a company.In the initial stage director introduce around 70 lakhs for formation and running for the the business.Now he wish to withdraw rs 10 lakhs from capital .if any problem if company withdraw Rs 10 lakh and pass capital drawing in director a/c.
if there is any limit for withdrawal by director in a company.In the initial stage director introduce around 70 lakhs for formation and running for the the business.Now he wish to withdraw rs 10 lakhs from capital .if any problem if company withdraw Rs 10 lakh and pass capital drawing in director a/c.
Vishrut Shah
(Expert)
12 May 2015
For any capital withdrawal in company it will be treated as buy back of shares and in said case two buy back should have minimum 1 year of gap. and it has to be based on reserved in the company.
There are detailed rule prescribed for the same.
There are detailed rule prescribed for the same.
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