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Crowded IT company

Can a company receive the earnings of a director’s brother?

My new client is an IT contractor who operates via a limited company as the director and sole shareholder. He pays himself a low wage and draws the rest of his income as dividends. He also has a brother (an IT contractor as well) who is a disqualified director.

Because the brother cannot operate under his own company my client lets him use the company as a conduit for his income. At the moment the disqualified brother is simply taking money out of the company; however there is nothing in writing so I can only assume that the brother is an employee of the company.

No tax planning at all has been taken to consideration and the brother is neither a shareholder nor is there any formal contract of employment or terms...