14 November 2008
Do you mean that the director has taken an advance from the company. If it is a profit making company question of deemed dividend will arise. Pl refer section 2(22)(e) of the income tax act,1961.
15 November 2008
under the companies act, with ref to payment of remuneration, tehre is no limit but it must be approved by BOD or resolution or its article. Director can't withdraw remuneration beyond its limit or withdraw without contract. If they do so, they are require to refund it immediately otherwise they will be liable under companies act.