Cash withdrawal by director

This query is : Resolved 

12 May 2015 Dear sir,
if there is any limit for withdrawal by director in a company.In the initial stage director introduce around 70 lakhs for formation and running for the the business.Now he wish to withdraw rs 10 lakhs from capital .if any problem if company withdraw Rs 10 lakh and pass capital drawing in director a/c.

12 May 2015 For any capital withdrawal in company it will be treated as buy back of shares and in said case two buy back should have minimum 1 year of gap. and it has to be based on reserved in the company.

There are detailed rule prescribed for the same.



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