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Dear All |
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Our Pvt. Ltd. Company's director which is also promoter of co. want to withdrawal some money for their marriage daughter but he said that I don't want to refund it in future and also we don’t have sufficient Accumulated profit or this year profit to pay as dividend.. is there any other mode except dividend and Remuneration to pay them some money from company account? |
It appears that promotor has also nto given any sort of unsecured loan to the company, so the interest and repayment of loan door also appeared closd.
In such circumstances some other way may be planned after reviewing the accounts and family members status of the promotors.
If due to the payment to the promotor his account in the books of the company appeared debit then deemed dividend provision u/s 2(22)(e) would be attracted to the extend of accumulated profit.
If the accumulated profit is negative or engligible then there would not be any adverse refurcaton even if the accounts goes negative though not advisable.
Suggest him to dispose of some of his shares to existing members and/or third party .
1. Company cannot pay dividend, since there are no accumulated profits for previous years or for the present year in your company
2. Private company can give loan to director without taking CG approval but in your case, Director does not want to refund the money, sothat you cannot avail this option.
3. Since Schedule XIII is not applicable to Private Companies, you can pay as much remuneration as provdied by AOA. (but you donot want to avail this option)
As per my opinion there are two possibilities a) promoter has to dispose some of his shares b) pay him by way of remuneration.
can we give some profession fees like 5 lac or more in 2 or 3 tranches but the director is not professional
in any specific field ?
CAclubindia
