200 company directors face jail for ‘excessive loans’

UP TO 200 company directors could face prosecution and possible imprisonment for taking “excessive” loans from company funds for their personal use and benefit.

Some of the suspect loans are in excess of 1 million. The loan amounts vary, with approximately one in three involving sums over 100,000.

The Office of the Director of Corporate Enforcement (ODCE) is cracking down on unlawful loans taken by company directors. Last year, the ODCE received 27 reports from auditors suspecting that indictable offences had been committed in relation to transactions between companies and their directors.