Loan to director - deemed dividend

Pankaj Arora (Learner) (3134 Points)

18 November 2011  

 

 

Dear All

Our pvt. Ltd. Company give 10 lacs loan to  a director now director is saying I don’t have money that’s why he can not return loan amount. could you pls tell me that can we convert this money into dividend or if you have any other solution to set off this amount from our balance sheet?