not a good look in a private company either mak... does he have a gambling problem ? old tax bill caught up on him? buying a lavish house ? a massive boat? whatever it was used for 10 mill is a lot to borrow out of our own business..... and is NOT normal.. if you are a sharp operator you leave as much capital in the business as possible ...
My point is it is quite common in a private company where you don't have anyone to answer to. If there is excess funds it is common practise to loan the money. Simpler for a business owner than approaching a bank. Who knows what he was using it for. One would hope it's not for gambling. The capital still belongs to the business, but it is now earning interest. I agree not a good look in a public company but it does happen there too. Recent example, a company called ZYB. Had $500K in the bank and the director borrowed ALL OF IT.
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