Readers’ forum: Repayment of director’s loan from wound up company

I was planning to advise my client to apply for an informal winding up of his personal company which has nominal share capital and no assets other than accumulated cash of about £20 000.

All of the conditions for an informal winding up under Companies Act 2006 s 1030A would have been met. However he has told me that he has already transferred all of the cash in the company to his personal account – there is no paperwork to go with this.

My thinking is that this prior transfer of cash should be treated as a directors’ loan. The company can then make an application for strike off under CA 2006 s 1003. One of the conditions for capital treatment in CTA 2010 s 1030A is that the company intends to secure the payment of any sums due to it. Is it essential that...