Transactions between a Company and its Directors - Accounting, Legal and Tax Implications

Transaction between a company and its directors requires careful consideration for practitioners and those in industry and commerce. Errors in just one of the three aspects can create difficulties for the directors and their advisers.

This course explores the common, and not-so-common, issues faced by companies and provides a useful insight by use of a case study with numerous practical examples.

Content will include:

• Who are the directors and thinking about transactions with their connected persons
• Legality of transactions – particularly loans and substantial property transactions
• Legality of dividends
• Companies Act – the disclosure requirements for advances, credits and guarantees
• Related parties – disclosure issues for medium/large and small entities
• Accounting treatment of loans to/from owner managers
• Tax implications – remuneration vs dividends, s455 treatment, and benefits in kind
• A case study looking at a variety of transactions looking at all three aspects – legal, accounting (treatment and disclosure) and taxation

The content for online courses predating 2021 may vary.