Repayment of share application money & advance to directors

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1.One private limited company  deals in resorts business does not start its business . it only starts purchasing land & building. It paid advance to its directors. is there any legal problem in that. whether advance paid to directors considered as dividend or not?

2. A private limited company accepts share application money from its existing directors. but unable to issue shares. so the company repay the money to directors. IS there any legal problem in that

Replies (1)

1. You were telling that the company has given advance to the directors. but what is the nature if the advance? Is it given as advance against remuneration or what? however whatever it may be, the amount paid will not be treated as dividend.

2.There is no time limit for a Private company to return the share application money. so here there is no legal obligation..


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