Pls Help

CA Vishal kapoor (Partner) (320 Points)

10 December 2010  

HI,
I want to know that how the company can use there reserves & surplus accumulated during previous years.
I mean if a Co Named XYZ private Limited having 2 Directors named X & Y. The Directors having a share Capital of Rs. 5lac each.Company transfer the profit of each year into the Reserve & Surplus a/c having a balance of (say)8lac.
Now the Director want to use the balance of Rs. 8lac for there own purpose or for company purpose.
Now My question is whether director use these funds same as capital of directors just like partnership firms or there are some other provisions regarding the same.
Directors want some funds from company for personal purpose.

Kindly Help.

Thanks in Advance.