advice needed: I just resigned from a small not-for-profit business. I'm currently owed a director's loan of £4200. the company is refusing to replay my loan as they say this is in contravention of their not-for-profit status; namely, this article: 5.The income and capital of the organisation shall be applied solely towards the promotion of the objects of the organisation; and no part of the income or capital shall be paid or transferred, directly or indirectly, to the members of the organisation, whether by way of dividends or bonus or otherwise in the form of profit. are they correct? or should I continue to request repayment? Many thanks for any advice.
Also members in corporate law means shareholders . I would agree with ani that nfp can pay off commercial loans so I don't think this clause debars them unless the return on loan is based on profits or income rather than straight interest. Am not a specialist though.
Hi - I have written evidence of the loan, including a recent summary of accounts which specifically states "Loan Each 4252". the loan was not made as a lump sum; it was accrued over time basically by paying ourselves low wages at times of high income. thanks for responding to this. It's a resignation I had to make by necessity, a business I originally started, and I've been left without any income at all, so I'm keen to get any money that's legally mine.