Loan From Director

This discussion clarifies the rules regarding loans between directors and their companies in the UK. Generally, a director cannot take a loan from their company. However, a director can deposit their own funds into the company as a loan and subsequently receive that amount back. A director can also provide a loan to the company, provided they declare the funds are their personal assets and not borrowed. Borrowing from the company is permissible under specific conditions outlined in Section 185 of the relevant legislation.