Company A (Pvt. Ltd.) is crediting all its revenue in its bank account, but none of the expenses were paid through bank. No cash withdrawn. Most expenses were paid through personal cash / credit cards of directors. Can it be shown as Expenses incurred by company and reimbursable to directors. Are there any provisions under companies act which prohibits / limits such transactions.
Further as we understand there is no limit to director's remuneration in a Pvt. Ltd. So can these expenses be adjusted to director's remuneration payable by company. Do we need to declare such remuneration in any of the forms to MCA or it only needs to be recorded in the minutes of AGM.
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