Discover how insolvency affects you and what steps to reduce personal liability
Overview
If you are a company director with a director’s loan account (DLA), it is important to understand how insolvency affects your personal position. When a company enters financial difficulty, the way your loan account has been managed can significantly increase or reduce your exposure.
Our guide explains the key risks and the practical steps you can take to stay protected.
What is a director’s loan account?
A director’s loan account records money that you take from or pay into the company outside your salary or dividends. If you have taken out more than you have put in, your loan account is overdrawn. That means you owe the company…