15/10/2026
Taken too much money out of your business while it’s struggling?
Dividends can only lawfully be paid from sufficient profits, and an overdrawn director’s loan can be pursued by a liquidator if the company becomes insolvent. Repaying yourself or a connected party ahead of other creditors can be reversed by the court and may lead to personal liability or disqualification.
If you’re worried, get advice early. Here’s what to know:
https://www.realbusinessrescue.co.uk/advice-hub/what-happens-if-youve-taken-too-much-money-out-of-your-business
We discuss inflated salaries, unlawful dividends and overdrawn director’s loans and explain what happens if you take too much money out of your company.