G greentree Registered User Messages 100 10 Nov 2012 #1 I wonder if someone could give us some advice. We are in the process of buying a new house and have been refused a bridging loan from the bank (circa 100k). I have my own company and have the funds to cover this. Is it illegal for my company to loan me this money for a few weeks while we sell our home? Thanks
I wonder if someone could give us some advice. We are in the process of buying a new house and have been refused a bridging loan from the bank (circa 100k). I have my own company and have the funds to cover this. Is it illegal for my company to loan me this money for a few weeks while we sell our home? Thanks
J Joe_90 Registered User Messages 2,222 11 Nov 2012 #2 Maybe, Section 31 Companies Act 1990 prohibits loans to directors but there is an exemption where the loan is less than 10% of the relevant assets of the company. So if the company has a balance sheet total of more than €1m that you may be ok.
Maybe, Section 31 Companies Act 1990 prohibits loans to directors but there is an exemption where the loan is less than 10% of the relevant assets of the company. So if the company has a balance sheet total of more than €1m that you may be ok.
G greentree Registered User Messages 100 11 Nov 2012 #3 This would definitely break the 10% rule. So, what would happen if I did it? Would I be sent to Jail?
This would definitely break the 10% rule. So, what would happen if I did it? Would I be sent to Jail?
J Joe_90 Registered User Messages 2,222 12 Nov 2012 #4 Could not possibly comment. It's a breach of company law.