how reinvestment to cover director's salary

[chy_55223]

HI there

can any senior member advice on this topic.

As we (team) used form of director loan to invest the company 220k, but we claim director salary( year1 22k, year2 32k, year3 32k) . we did not make profit on the first year, but 2-3 year we generated enough profit to cover all 3 years salary. So i guess we still need to reinvest the year 1 director's salary, as caseworker can say the first year we use investment to pay director salary. Am I right?

If so, what the right process to reinvest the money back? Make a second director loan? or just change the original director loan?

please advice

thank every member here.

[zimba]

Yes you must reinvest the money you took out of your original investment. Make a second director's loan and amend your loan agreement

[chy_55223]

Yes you must reinvest the money you took out of your original investment. Make a second director's loan and amend your loan agreement

Thanks for your reply zimba88
I still have two concerns:

1. is it ok only reinvest the money that covering the first year salary? As my 2-3 years make enough profit to cover my salary, therefore, I only need reinvest 2k (=220K-22K)? Am i right?
in case that will you think it is better to cover all salary?

2.regarding the second director loan: I just revise the amount of our original agreement OR prepare a separate agreement to show the second director loan?

Please advice. thank you very much!