The Federal Court has ruled a company facing liquidation was entitled to relief for a “running account” director’s loan, worth nearly $3 million, without written agreement.
A loan of nearly $3 million has been cleared for recovery from two former directors after the Federal Court granted a company’s right to indemnity of director loans to repay Commissioner of Taxation liabilities.
Former directors Benjamin Chow and Dr Roberta Chow have been ordered to pay back a director’s loan of $2,551,330 to Sydney Subdivision, which went into liquidation in mid-2015 after becoming liable to the Commissioner for amounts of primary tax, interest and penalties, in the sum of…