Withdrawl of funds by director

a pvt ltd having family members as directors,they have retained profit in the company every year in reserve and surplus account, can they withdraw the amount from reserves or whether they can withdraw any amount as a loan from the company ?
Replies (4)
Quick Summary
This discussion explores how directors of a private limited company can withdraw retained profits. Options include taking funds as a loan, distributing them as dividends, or receiving performance bonuses. Each method has different tax implications and considerations for the directors and shareholders.

They can withdraw profits in their profit sharing ratios or take it as a loan

As a loan can be withdrawn

Directors can take performance bonus from Profit earned during the year but have to pay tax on it.

 BESIDES MENTIONED ABOVE BY MY FRIENDS, THE COMPANY CAN ISSUE DIVIDEND SO THAT DIRECTORS & SHAREHOLDERS GET BACK SOME RETURNS

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
Featured ARTICLESHIP 28 October 2026
CA- Inter and Articles

N N V Satish & Co.,

Hyderabad

CA Inter

View Details
Company
28 October 2026
Assistant Director/ Associate Director-Finance & Accounting

Krea University

Chennai

CA

View Details
Company
Featured ARTICLESHIP 31 October 2026
CA Articleship

apricus india

Navi Mumbai

CA Inter

View Details